The Inter-Ministerial Group (IMG) for asset monetisation on Thursday recommended sale of Mahanagar Telephone Nigam Limited’s (MTNL’s) non-core assets worth ₹1,100 crore for consideration and approval by the Union Cabinet-delegated Alternative Mechanism (AM).
The recommendation follows an IMG meeting cochaired by Department of Public Enterprises (DPE) Secretary K. Moses Chalai and Department of Telecommunications (DoT) Secretary Amit Agrawal.
“The proposals primarily relate to surplus land and building assets of central public sector enterprises (CPSEs) identified for monetisation,” the finance ministry said in a press statement. The assets belong to MTNL, an official aware of the matter confirmed.
“Following the requisite approvals, further monetisation activities will be undertaken in accordance with prescribed procedures,” the release added.
The latest tranche of assets identified for monetisation is part of the government’s broader strategy to manage MTNL’s debt. The telecom firms’ liabilities climbed to around ₹40,000 crore in 2025-26 (FY26).
MTNL has defaulted on loan repayments to India’s major public sector banks, including State Bank of India (SBI), Punjab National Bank (PNB), Bank of India (BoI), Indian Overseas Bank (IoB), Union Bank of India, Punjab & Sindh Bank, and UCO Bank.
The telecom sector public sector undertaking (PSU) reported a net loss of ₹3,102 crore last financial year on total income of ₹1,469 crore.
It also raised ₹419 crore in FY26 through sale of two of its properties in Mumbai and New Delhi to National Bank for Agriculture and Rural Development (Nabard) and the Bihar government, respectively.
The finance ministry’s specialised agency National Land Monetisation Corporation (NLMC) would carry out monetsation of the identified ₹1,100-crore assets on behalf of MTNL.
Once the Cabinet delegated-AM approves the monetisation proposal, NLMC will look for potential buyers.
If a government body expresses interest in purchasing the asset, the deal can be carried out through private placement. Otherwise, NLMC will hold an auction for sale to other entities from the private sector.
The government set up NLMC in 2022 under the Ministry of Finance as a specialised agency to monetise surplus land and building assets of CPSEs and other government agencies.
The corporation is also mandated to facilitate the closure of CPSEs and streamline the strategic disinvestment process of government-owned CPSEs.
Under the arrangement, assets are transferred to NLMC for holding, management, and monetisation.
The corporation also advises and assists other government entities, including CPSEs, in identifying surplus non-core assets and monetising them professionally and efficiently to maximise value realisation. Therefore, its mandate covers both assets transferred to it and those for which it provides advisory and facilitation support.
NLMC has set a target of mobilising up to ₹15,000 crore in the current financial year through asset monetisation.
The agency has already mobilsed around ₹9,000 crore so far in the year, and has an asset pipeline of ₹5,000-6,000 crore for monetisaton.
