New Delhi: The Alternative Mechanism of the Department of Investment and Public Asset Management (DIPAM) has approved the monetisation of 11 assets of Bharat Sanchar Nigam Ltd (BSNL) and six assets of Mahanagar Telephone Nigam Ltd (MTNL) under Phase I, Minister of State for Communications Sanjay Dhotre said on Wednesday. While responding to a question in the Lok Sabha, Dhotre added that three properties of BSNL and one property of MTNL have been identified for the bidding process. Asset monetisation is part of the government's plan for the revival of the two state-run telecom companies.
"The assets of BSNL /MTNL have been identified for monetization through Department of Investment and Public Asset Management (DIPAM) and directly by BSNL/MTNL through outright Sale/Leasing to other Govt. depts./PSUs/Other eligible Organizations," said the minister. BSNL has so far been able to generate Rs 241.87 crore from the monetisation of land/building assets since the announcement of the revival package.
Under the revival plan, the government has provided Sovereign Guarantee of Rs 8,500 crore and Rs 6,500 crore to BSNL and MTNL, respectively. BSNL has raised Rs 8,500 crore at coupon rate of 6.79 percent per annum and MTNL has raised Rs 4,361 crore at coupon rate of 7.05 percent per annum and Rs 2,139 crore at coupon rate of 6.85 percent per annum in two tranches. "BSNL and MTNL have informed that the amount realised through the bonds has been utilised to restructure/repay existing high cost debt," Dhotre told the Lok Sabha.
A total allocation of Rs 24,084 crore for spectrum for 4G services was made in FY2020-21. However, due to delay in the launch of 4G services, the funds are being re-allocated in FY 2021-22, said the minister. BSNL has floated an Expression of Interest (EoI) on January 1 for prior registration/Proof of Concept (PoC) from Indian companies interested in participating in BSNL's upcoming 4G tender, to promote indigenous manufacturing in the telecom sector.
The government approved the revival plan for BSNL and MTNL on October 23, 2019. The revival plan includes measures to reduce the staff cost through a Voluntary Retirement Scheme (VRS) for employees of age 50 years and above, administrative allotment of spectrum for providing 4G services with funding through budgetary allocation, monetisation of land/building and tower/fibre assets to generate resources to retire debt, meet CAPEX and other requirements, debt restructuring by raising of Sovereign Guarantee Bonds and in-principle approval for merger of BSNL and MTNL.
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