It also plans to build a pipeline of MTNL assets for monetisation over the next two years, one of the officials said. Assets worth up to ₹6,000 crore have so far been identified, with the monetisation process at an advanced stage, the second official added.
Five properties owned by MTNL in Mumbai, valued at about ₹4,000 crore, have already received approval from the Alternative Mechanism (AM), a body delegated authority by the Union cabinet to clear such proposals, the official said. The National Land Monetisation Corporation (NLMC), the government’s specialised asset-sale agency, will oversee the process.
Last week, the inter-ministerial group (IMG) on asset monetisation, comprising representatives from the finance ministry’s Department of Public Enterprises (DPE) and the communications ministry’s Department of Telecommunications (DoT), also recommended a fresh tranche of MTNL assets worth ₹1,100 crore for Cabinet approval.
Email queries sent to the finance ministry, the communications ministry and MTNL remained unanswered until the time of publication.
The proposed sales form part of the government’s wider effort to manage MTNL’s debt. The company’s liabilities rose to about ₹40,000 crore in 2025-26 (FY26), leaving it struggling to meet its financial obligations.
MTNL has defaulted on loan repayments to several major public sector banks, including State Bank of India, Punjab National Bank, Bank of India, Indian Overseas Bank, Union Bank of India, Punjab & Sind Bank and UCO Bank.
The telecom public sector undertaking reported a net loss of ₹3,102 crore in FY26 on total income of ₹1,469 crore.
It raised ₹419 crore during the year through the sale of two properties, one in Mumbai and the other in New Delhi, to the National Bank for Agriculture and Rural Development (Nabard) and the Bihar government respectively.
Once the Cabinet approves the proposed monetisation, NLMC will approach prospective buyers. If a government entity expresses interest in acquiring a property, the transaction can be completed through private placement. Otherwise, NLMC will put the asset up for auction to attract buyers from the private sector, one of the officials said.
The government established NLMC in 2022 under the finance ministry as a specialised agency to monetise surplus land and buildings held by central public sector enterprises (CPSEs) and other government bodies. It was also tasked with facilitating the closure of CPSEs and streamlining the strategic disinvestment of government-owned companies.
Under the arrangement, assets are transferred to NLMC for holding, management and eventual sale. The corporation appoints independent agencies to value the properties. Once the valuation is complete, the government and NLMC jointly determine a reserve price before the corporation approaches potential buyers.
NLMC also advises and assists government entities, including CPSEs, in identifying surplus non-core assets and monetising them in a professional and efficient manner to maximise returns. Its remit therefore extends beyond assets formally transferred to the corporation to include those for which it provides advisory and transaction support.
