Govt chalks out a plan to raise Rs 16,000 crore by selling off MTNL, BSNL assets

The finance ministry has come up with a plan to raise Rs 16,000 crore by selling off assets belonging to state-run telecom companies Mahanagar Telephone Nigam and Bharat Sanchar Nigam Limited (BSNL).

Officials said that the proposal has already been cleared by the National Land Monetization Corporation (NLMC) and the Department of Public Enterprises, and is expected to get final approval from the Department of Investment and Public Asset Monetisation next week.

A group of ministers, led by Rajnath Singh, who are overseeing the revival plan of the two state-run companies, had given its nod to the proposal earlier this week. One of the officials added that it had also approved waiver of fees and service charges from the Delhi Development Authority and Maharashtra Housing and Area Development Authority.

The development removed key bottlenecks in the sale of assets of the two companies.

NLMC had been without a full-time chief executive for some time and had led to slowing down of the monetization process. The government last week appointed Vikas Anand, a 2002 batch Uttarakhand Indian Administrative Services officer as full-time CEO of the body.

According to the officials, the proceeds from the sale will be used to strengthen the two companies.

MTNL and BSNL have more than 600 land parcels and buildings across India, including prime locations in Mumbai, Delhi and Chennai.