The central government of India has announced an ambitious target to collect ₹5,473 crore from asset monetisation of its two state-run telecom giants, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL), by the end of fiscal year 2026.
Key Highlights
- Monetisation Targets:
- BSNL – ₹900 crore
- MTNL – ₹4,573 crore
- Government Assurance: No plans to shut down BSNL or MTNL; proceeds will be used as approved by the Union Cabinet.
- Revival Plans: The monetisation falls under the broader revival strategy approved in 2019 based on DIPAM guidelines.
- Recent Performance: BSNL recorded a net profit of ₹280 crore in Q4 FY25, following ₹262 crore in the previous quarter—marking its first back-to-back profits in 18 years.
Asset Monetisation Progress
Since 2019, BSNL has registered ₹1,341 crore worth of land for monetisation, while MTNL is yet to complete any asset sales. The monetisation involves the sale or lease of surplus land and non-core assets, with proceeds directed to rejuvenate the companies’ infrastructure and operations.
Government’s Commitment
The Ministry of Communications stressed that the government remains fully committed to reviving both BSNL and MTNL. Ministers Jyotiraditya Scindia and Chandra Sekhar Pemmasani reaffirmed that the goal is to ensure operational sustainability, not closure.
Impact on Employees
The asset monetisation will not impact the jobs or working conditions of employees at BSNL and MTNL. Instead, the process is designed to secure their future by improving the companies’ financial stability and efficiency.
Industry Perspective
This strategic move reflects the government’s larger vision of reform and value creation within India’s telecom sector. BSNL’s return to profitability underlines the effectiveness of these revival measures.
Conclusion
With asset monetisation plans and fresh government support, BSNL and MTNL are on the path toward financial health and future growth. These developments underscore a stronger and more competitive public telecom sector in India.
