NEW DELHI: State-owned Bharat Sanchar Nigam Limited (BSNL) earned over Rs 600 crore in the last financial year by monetising its underutilised properties nationwide. The telecom service provider sold a property worth Rs 311.78 crore and earned Rs 319.31 crore by renting other underutilised properties in the country.
According to DoT (Department of Telecommunication), its properties in Anna Nagar, Chennai, was sold to CBSE (Central Board of Secondary Education) and it paid the advance payment of Rs 151 crore. Similarly, its other property in Prayagraj was bought by the Indian Institute of Information Technology, Jhalwa.
Additionally, the company sold properties in various other parts of India. However, the telco, along with its subsidiary MTNL, faces major hurdles in its monetisation efforts due to legal roadblocks. MTNL currently holds a massive portfolio of 281 properties in prime locations like Mumbai and Delhi.
In Delhi, the Delhi Development Authority (DDA) throws a wrench into the plan by demanding a hefty 50% share of any profits generated from the sale of MTNL properties. A similar situation is in Maharashtra, where the state government itself hasn’t granted clearance for the company to proceed with monetisation efforts. Currently, BSNL has nearly 5,080 vacant spaces nationwide available for rent.
“Reason for the subdued response from these properties is the legal issues involved. As you know, the properties are spread across the country, involving state governments and other agencies. In many instances, these states are not giving clearance. In the case of Delhi, DDA is asking for a share of 50% of profits. These are the factors making monetisation of BSNL and MTNL difficult,” said a DoT official.