Government monetizes MTNL assets worth Rs 10,000 Crore, shares surges 10%

Share of Mahanagar Telephone Nigam Ltd (MTNL) has increased almost 10%, after government unlocked asset monetization of over Rs 10,000 crore at state‑owned telecom firms BSNL and MTNL, as per a news source. 

With almost Rs 3,000 crore realised by BSNL and close to Rs 7,000 crore by MTNL, the monetization exercise has now been completed. The proceeds were largely generated through the sale of land parcels and other non-core, underutilised assets across the country, including prime real estate holdings in Mumbai. Officials told the news source that the necessary documentation is currently being finalised, and the financial impact is expected to be reflected in the companies’ balance sheets within the next 30 to 45 days.

A major portion of the proceeds will be directed towards servicing MTNL’s mounting debt and clearing overdue bank liabilities, one of the key objectives outlined in the Cabinet-approved revival plan for the telecom PSU. MTNL’s total debt is estimated at Rs 34,000–35,000 crore, including defaults exceeding Rs 8,500 crore owed to public sector banks.

According to an official, this drive focuses on unlocking idle assets, maximising value for the exchequer and improving operational efficiency. The government has set fresh monetization targets for FY26, with BSNL expected to generate Rs 900 crore and MTNL Rs 4,573 crore. Notably, BSNL has already surpassed expectations, having realised around Rs 1,350 crore so far.       

MTNL had defaulted on Rs 8,346 crore in bank loans, a key issue flagged by lenders during a meeting with Finance Ministry officials on May 9, 2025. Beyond bank debt, MTNL carries substantial liabilities, including Rs 24,071 crore in sovereign-guaranteed bonds and Rs 1,151 crore in unpaid bond interest owed to the Department of Telecommunications. This brings its total financial obligations to approximately Rs 33,568 crore as of March 31. The sovereign-guarantee bonds are scheduled to mature by 2034.