Why BSNL is trying to sell it's prime property in throw away prices

Bharat Sanchar Nigam Limited Employees Union is claiming that the state telecom operator is planning to sell eight BSNL properties in prime localities of Chennai at throwaway prices. The list of identified properties released by the union includes the landmark 1.81 lakh sqft Telephone House on NSC Bose Road, besides land parcels in Kilpauk, Royapettah, Egmore and Ambattur.

According to P Abhimanyu, the general secretary of the union, the DoT is moving a cabinet note to revive BSNL, in which one revival package is by transferring the state-run operator’s bank loans to a special purpose vehicle (SPV). One of the components envisaged in the revival package is to make BSNL a debt-free company through transfer of BSNL’s bank loans to a special purpose vehicle (SPV), he added.

As per P Abhimanyu, noting that identified land parcels of BSNL will also be transferred to the SPV for being sold off to repay loans, he said, BSNL management has already finalised a list of 63 land parcels across the country. He further said that , eight land parcels in Chennai are being transferred by BSNL to the SPV. While the total market value of these land parcels has been determined by the BSNL management at Rs 2,753.67 crore, whereas, the market value of the land parcels is estimated to be Rs 3,867.89 crores. In Chennai alone, the BSNL’s land parcels are being undervalued by more than Rs 1000 crore, he added.

As per the details released by the union, the total area of the eight properties identified in different parts of the city was 34.67 lakh sqft. The land properties includes wireless stations and staff quarters. The largest land parcel measuring about 13.3 lakh sqft is on Tiruvottiyur High Road. Now, it is the high time for the intervention of telecom secretary over the issue for appropriate action to stop the move.