SynopsisThe asset monetisation is part of the Rs 68,000-crore revival package for loss-making telecom public sector enterprises MTNL and Bharat Sanchar Nigam. MTNL provides telecom service in Delhi and Mumbai. It reported a loss of Rs 641 crore for the October-December quarter.
The ambitious asset monetisation programme of the state-run companies is likely to start with the sale of real estate and land assets of telecom services provider Mahanagar Telephone Nigam.
MTNL’s assets identified for sale will be auctioned through the online e-bidding platform set up by MSTC, a senior official said. “Bidding for MTNL assets will take place through MSTC, this will be the first one,” the official said.
MTNL had identified assets including 36 acres in areas like Vasai Hill, Mulund and Simpholi in Mumbai, shop-cum-office complexes in Delhi and residential quarters in Noida, which will be monetised in the first phase.
“The feasibility study should be done within two to three months, after that bidding process should begin based on the discovered base price,” the official added.
Agencies
The government is developing a platform through MSTC for selling non-core assets of public sector enterprises, which will be coordinated by the department of investment and public asset management (DIPAM).
The asset monetisation is part of the Rs 68,000-crore revival package for loss-making telecom public sector enterprises MTNL and Bharat Sanchar Nigam.
MTNL provides telecom service in Delhi and Mumbai. It reported a loss of Rs 641 crore for the October-December quarter. The company’s share closed 3.79% up on BSE at Rs 13.98 on Tuesday.
If the MTNL assets auction is successful, the government may look at land assets of BSNL for sale. Other PSEs such as BEML and Shipping Corporation of India may follow as carve out of their non-core assets has been made part of the preliminary information memorandum issued for strategic disinvestment.
Even in the case of state-run companies not being divested, the government is strongly pitching for a carve out of non-core assets or de-merging and selling them to generate revenue for capital expenditure, reduce debt and improve efficiency.
DIPAM has advocated that CPSEs should include asset monetisation and market capitalisation improvement in their memoranda of understanding with respective ministries. Most state-run entities have big corporate offices, housing and land banks that may not be required for core operations. Railways, for instance, has a lot of land around its stations.
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