Business1 min read

Govt plans Rs 9k cr asset sale to clear telco dues

By · Published by Everything Blog

In short

The initiative pairs a finalized Rs 9,000 crore monetization pipeline with an annual asset sale target of Rs 4,000-5,000 crore to address telecom liabilities. Proceeds are strictly partitioned for debt, leaving operational expenses and salaries to be funded by internal generation like MTNL's rental income. Meanwhile, about 40 vetted properties have already been submitted to the National Land Monetisation Corporation under strict checklist requirements.

Key points

  • Capital generated from property sales will be preserved exclusively for liabilities rathe…: Capital generated from property sales will be preserved exclusively for liabilities rather than funding ongoing operational expenditures.
  • Thousands of land parcels across postal and telecom agencies remain pending mutation befo…: Thousands of land parcels across postal and telecom agencies remain pending mutation before they can be monetized.
  • The National Land Monetisation Corporation requires a completed 32-field checklist before…: The National Land Monetisation Corporation requires a completed 32-field checklist before taking on any referred properties.

Sources checked by our analysis pipeline: 1

The government has "more than enough cushion" to meet the liabilities of telecom and postal public sector undertakings (PSUs), estimated at nearly Rs 50,000 crore, including sovereign guarantee bonds worth around Rs 30,000 crore.

Also read: Ambani's Jio Platforms explores tech-for-equity talks with Comcast and Charter, sources say

Additionally, sources said the government has lined up an annual asset monetisation pipeline of Rs 4,000-5,000 crore to meet these obligations, while describing the earlier state of property records as "a huge mess", with the Department of Posts (DoP), Department of Telecommunications (DoT), BSNL and MTNL occupying properties belonging to one another.

Over the last two years, the departments have sorted out ownership, and about 862 properties have been settled with the principle that each entity keeps what belongs to it.

DoT has issued a circular and a No Objection Certificate (NOC), and BSNL and DoP are expected to issue NOCs to each other shortly to settle title issues.

Officials said the government is also working to resolve land record mutations that have remained pending for decades across several public sector undertakings…

Business

More in Business