Govt plans to monetise non-core assets of MTNL worth up to ₹6,000 crore: Report

The central government is reportedly planning to monetise non-core assets worth up to ₹6,000 crore owned by debt-laden Mahanagar Telephone Nigam Limited (MTNL) this financial year, as it looks to raise funds to repay part of the state-owned telecom company's mounting liabilities.

According to a report in Business Standard that cited officials familiar with the matter, assets worth up to ₹6,000 crore have been identified and the monetisation process is at an advanced stage. The government also plans to build a pipeline of MTNL properties for monetisation over the next two years.

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Five MTNL properties in Mumbai, valued at around ₹4,000 crore, have already received approval from the Alternative Mechanism (AM), a body authorised by the Union Cabinet to clear such proposals, it said. The National Land Monetisation Corporation (NLMC), the government's specialised asset-sale agency, will oversee the process.

Separately, an inter-ministerial group comprising representatives from the finance ministry's Department of Public Enterprises and the communications ministry's Department of Telecommunications recommended a fresh tranche of MTNL assets worth ₹1,100 crore for Cabinet approval last week.

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The proposed sales come as MTNL's liabilities climbed to around ₹40,000 crore in FY26. The company has defaulted on loan repayments to several public sector banks, including State Bank of India, Punjab National Bank, Bank of India and Union Bank of India.

MTNL reported a net loss of ₹3,102 crore in FY26 on total income of ₹1,469 crore. It raised ₹419 crore during the year by selling two properties – one in Mumbai to Nabard and another in New Delhi to the Bihar government.

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Following Cabinet approval, NLMC will approach prospective buyers, as per the report. Properties sought by government entities can be sold through private placement, while those without such interest will be auctioned to private-sector buyers.

Established in 2022 under the finance ministry, NLMC is responsible for monetising surplus land and buildings held by central public sector enterprises and other government bodies. It appoints independent agencies to value properties before jointly determining reserve prices with the government.