BSNL, MTNL nudged to monetise land faster to pare debt
BSNL) and Mahanagar Telephone Nigam (MTNL) for the slow pace of their land monetisation process, especially in the metro cities. They have released only ?550 crore from land monetisation in the past few years, compared with the estimated potential of over ?20,000 crore.
«BSNL and MTNL have been asked to speed up the process of land monetisation as the Centre is looking to reduce the debt of both telecom-sector PSUs,» a senior official aware of the matter told ET.
Cabinet Secretary Rajiv Gauba called a review meeting with the senior officials of BSNL and MTNL earlier this week to take an update on the monetisation process. «They have been asked to prepare a detailed circle-wise report, with the land parcel and reason for the delay or possible hurdles, by May 31,» another official said.
During the meeting, executives from the state-run operators highlighted issues around taxation, including on unearned income, and various permissions required at the state and local levels for the slow monetisation process.
«The management of both BSNL and MTNL said that there are significant issues which are creating hurdles including permissions from state governments, local bodies, and in many cases title ownership of the assets,» the second official said.
Last year, the Department of Telecommunications (DoT) informed the Parliamentary Standing Committee on Communications and IT that the Department of Investment and Public Asset Management (DIPAM) had approved the monetisation of BSNL assets worth ?18,200 crore and six MTNL
