MTNL Approves Sale of Bandra Kurla Complex Property to NABARD for ₹350.72 Crore

NEW DELHI: State-run telecom firm Mahanagar Telephone Nigam Limited (MTNL) has received approval to sell its residential property in Mumbai's Bandra Kurla Complex to the National Bank for Agriculture and Rural Development (NABARD) for ₹350.72 crore. This sale, approved by MTNL's Board of Directors, is part of a larger government plan to monetise assets of state-run telecom operators. The property includes 28 residential units spread across 2,680 square meters.

MTNL announced this significant transaction in an exchange filing, adhering to Securities and Exchange Board of India (SEBI) regulations. The sale will proceed either as a government-to-government transfer or a direct sale to NABARD. This move aligns with a Presidential approval granted in July 2020, which allows for the monetisation of company assets.

The government has set ambitious targets for asset monetisation, aiming to collect ₹900 crore from BSNL and ₹4,573 crore from MTNL by the financial year 2025-26. The government had earlier emphasised that there is no plan to shut down BSNL and MTNL, and the proceeds of asset monetisation are being used in accordance with the approvals of the Union Cabinet.

A revival plan for BSNL and MTNL, which includes asset monetisation following DIPAM (Department of Investment and Public Asset Management) guidelines, was approved by the Cabinet in October 2019. While BSNL has sold land assets worth ₹1,341 crore since 2019, MTNL had not reported any asset sales until this recent development. Together, BSNL, MTNL, and APSFL hold a combined 20.22% of the wireline market share as of October 31.

This sale is a crucial step in the government's efforts to bolster the financial health of state-run telecom operators. The proceeds from such sales are expected to be reinvested in modernising the telecom infrastructure and improving services for customers. The Bandra Kurla Complex, known for its strategic location and high real estate value, is a prime asset for both MTNL and NABARD.