The Government of India has issued an order to expedite the sale of land assets (land) of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL). According to an ET report, state-run telecom companies were asked by the government to sell land assets to raise funds. Out of about Rs 20,000 crore, BSNL/MTNL has been able to collect only Rs 500 crore so far. And seeing the slow pace of this process, the Center has ordered the two telecom companies to speed up the land sale.
The report also said that senior officials of BSNL and MTNL have to prepare a circle-wise report by May 31 stating the reasons behind the delay in the sale of land. And in this context, officials said that the sale of the land could not be completed quickly due to tax issues along with various permissions required at both the state and local levels.
In May last year, BSNL and MTNL were asked to identify 10 properties in each of the 22 telecom circles, which could be sold. And managers (CGM) were also given a total of 3 months to identify these properties. But even after 8 months passed after the order, they could not complete the first phase of identification.
Incidentally, the government feels that the state-run telecom companies need cash to give a new lease of life. Some of this money can come from selling land. Besides, the central government has also provided revival packages for the two institutions.
