The government has kick-started the process of monetising land assets of telecom firm MTNL and has sought bids from global property consultancy firms for managing the sale process. The Department of Investment and Public Asset Management (DIPAM) has invited financial bids by November 9 from the firms for monetising flats, apartments and plots of MTNL which have been divided into 5 clusters.
“DIPAM proposes to appoint, from among the international property consultancy firms empanelled… one each for the 5 clusters of assets belonging to MTNL which are in the form of quarters located in Mumbai," it said. DIPAM added that the consultancy firms empanelled will be required to prepare the ‘Feasibility Report’ in about three weeks for each of the assets allocated to them, provide end-to-end transaction advisory services and ensure completion of these transactions.
State-owned MTNL submitted to DIPAM a set of assets, including three land parcels, two staff quarters and a telephone exchange along with staff quarter in Mumbai, for monetisation. In October last year, the government approved the revival plan for MTNL. The revival plan includes measures to reduce the staff cost through a voluntary retirement scheme for employees of age above 50 years, administrative allotment of spectrum to MTNL for providing 4G service, asset monetisation, debt restructuring by raising of sovereign guarantee bonds, and in-principle approval for merger of BSNL/MTNL.
The amount raised through the sale of non-core assets would form part of the disinvestment proceeds. The government has set a target of Rs 1.20 lakh crore to be raised through CPSE disinvestment in the current financial year.