MTNL Approves ₹351 Crore Sale of Residential Property in Mumbai to NABARD

State-run telecom company Mahanagar Telephone Nigam Ltd (MTNL) has approved the sale of its residential property at Bandra Kurla Complex (BKC) in Mumbai to the National Bank for Agriculture and Rural Development (NABARD) for ₹350.72 crore. The transaction, which was cleared by MTNL's Board of Directors through a circular resolution dated December 15, 2025, marks a significant step in the company's asset monetization strategy.

The property in question is the GN Block, BKC Quarters, which comprises 28 residential quarters located at MMRDA Plot No. R-4, BKC, Bandra (East), Mumbai. The plot area of the property is 2,680 square metres, and the built-up area is 4,019.02 square metres. The transaction will be executed through a government-to-government transfer or direct sale to NABARD.

MTNL's decision to sell this property is part of a broader effort to streamline its operations and focus on core business activities. The Alternative Mechanism (AM) had already granted approval for the sale of the property to NABARD on November 11, 2025. This approval ensures that the transaction aligns with the government's broader economic and strategic objectives.

As part of the approved terms, NABARD will bear the costs associated with the transfer, including stamp duty, registration fees, and incidental charges. MTNL, on the other hand, will be responsible for all dues prior to the transfer, as well as the National Land Monetisation Corporation (NLMC) fee, as outlined in the letter of undertaking dated June 29, 2025.

The sale of the GN Block is expected to provide MTNL with a significant financial boost, which can be used to invest in modernizing its telecom infrastructure and enhancing its service offerings. This move is part of a larger trend of state-owned enterprises (SOEs) divesting non-core assets to improve their financial health and operational efficiency.

Shares of Mahanagar Telephone Nigam Ltd ended at ₹36.05, down by ₹0.81, or 2.20%, on the BSE. Despite the share price dip, the approval of the property sale is seen as a positive development by market analysts, who believe it will help MTNL reduce its debt burden and focus on its core telecom business.

In a related development, the Indian government has been urging states to prioritize BSNL and MTNL for government telecom needs. This initiative aims to support the revival of these state-owned telecom companies, which have been facing financial challenges in recent years. The government's efforts to bolster BSNL and MTNL are part of a broader strategy to ensure the availability of reliable and affordable telecom services across the country.

The sale of the GN Block to NABARD is a significant milestone for MTNL and underscores the company's commitment to asset monetization. It is expected to set a precedent for similar transactions in the future, potentially paving the way for further divestments that can help MTNL and other SOEs achieve their strategic goals.

In conclusion, the approval of the ₹351 crore sale of the GN Block residential property in Mumbai to NABARD is a strategic move that aligns with MTNL's broader objectives. It not only provides a financial boost but also helps the company streamline its operations and focus on delivering high-quality telecom services to its customers.