New Delhi, Nov 6:
The Inter-Ministerial Group (IMG) on asset monetisation has recommended the sale of surplus land and building assets of state-run Mahanagar Telephone Nigam Limited (MTNL) valued at Rs 1,100 crore to pare the struggling telco’s liabilities.
The recommendation follows a high-level review co-chaired by Department of Public Enterprises Secretary K. Moses Chalai and Department of Telecommunications Secretary Amit Agrawal, with the proposal now placed before the Cabinet-delegated Alternative Mechanism for final execution approval. The monetisation will be steered by the National Land Monetisation Corporation (NLMC), which will evaluate outright private placement to interested public bodies or open commercial auctions.
The asset sale forms part of the Centre’s broader debt management strategy for MTNL, whose liabilities climbed to around Rs 40,000 crore in FY26. The telecom PSU, which defaulted on loan obligations to multiple state-run lenders including SBI, PNB, and Bank of India, posted a net loss of Rs 3,102 crore in the last financial year. In FY26, MTNL raised Rs 419 crore through property sales to NABARD and the Bihar government in Mumbai and New Delhi.