NEW DELHI: The government has commenced a process to monetise large parcels of prime land owned by state-run BSNL, which it seeks to revive and has seen several rounds of fresh fund infusions in recent years.
The National Land Monetisation Corporation (NLMC) has invited applications for valuation of the telecom company’s 35,591 sq meters (roughly 8.7 acre) of prime freehold land/building in five southern cities of Hyderabad, Bengaluru, Kozhikode, Ernakulam and Mangalore, according to an official source.
BSNL reported a profit of Rs 262 crore in the third quarter of 2024-25, marking its first return to profitability since 2007. The department of telecommunications (DoT) had projected BSNL to turn profitable in FY27 with a profit of Rs 558 crore, based on the potential increase in revenues expected in the coming years with the launch of 4G and 5G services. For FY27, DoT has projected the company’s revenues at Rs 33,553 crore, up 73.5% from Rs 19,344 crore reported in FY24.
The source said NLMC has asked empanelled international property consultants (IPCs) to submit their proposals by May 7 for carrying out the market valuation of the prime land pieces. The winning IPC would have to give the valuation report within 45 days after the agreement to carry out the valuation.
The empanelled consultants who can bid are: SBI Capital Markets, CBRE South Asia, Ernst & Young LLP, Cushman Wakefield India, KPMG Assurance and Consulting Services LLP, Deloitte Touche Tomatsu India LLP, Colliers International (India) Property Services, Anarock Property Consultants, Jones Lang La Salle Property Consultant (India), Darashaw & Company and RITES Limited.
The BSNL’s five freehold lands include 12,792 sq. mtr. in Ernakulam, 11331.2 sq. mtr in Mangalore, 4,354 Sq. mtr at Banjara Hills of Hyderabad, 4,420 sq. mtr in Kozhikode and 2,694.44 sq. mtr. at Bengaluru.
Monetisation of non-core assets like land and building would generate resources for the struggling state-run telecom firm.
BSNL last showed annual profits in 2008-09 and in the last 15 years post that, its net loss topped Rs 1.3 lakh crore. In FY24, BSNL narrowed its net loss to Rs 5,367 crore from Rs 8,161 crore in FY23.
Notably, in the three revival packages, the government has spent Rs 3.2 lakh crore on BSNL. Experts attribute the reason for the derailment of BSNL to the delay in the adoption of new technologies like 4G just like private operators did, employee inefficiency, weak customer service, and inability to control huge expense outgo in terms of employee bills.
NLMC is a government agency set up to carry out the monetisation of non-core assets of CPSEs.
NLMC will likely advise on about 5,000 acres of land for monetization from a clutch of sick CPSEs i.e., MTNL, BSNL, BPCL, B&R, BEML, HMT Ltd and Instrumentation Ltd, among others, in urban and semi-urban areas.
The defence ministry might take the help of NLMC to monetise about 32,000 acres of land belonging to military farms, abandoned airfields and camping sites, grounds and encroached land.
Source: The Financial Express
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