Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) are prioritising the government departments or bodies for selling land parcels. For the unaware, the government asked BSNL and MTNL to sell land and property assets which are not being utilised. The target is to generate Rs 20,000 crore, as a part of the revival package. The time frame for this is 4 to 5 years. According to an ET report, BSNL and MNTL will first offer the land to government bodies and departments then only it will offer it to other private bodies.
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This solves two problems for state-run telecom companies. Firstly, there's no auction route required, saving a ton of energy and time for the company. Then, there will be no delays in deciding the terms of sales between two departments or bodies, if both are government-run. Much recently, BSNL sold one of its properties in Lucknow to the Income Tax department for around Rs 229 crore. Note that Rs 229 crore is the market value of the property. So there are no discounts, and the rates are fixed, it is just that the route of auction can be bypassed.
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BSNL and MTNL will use the funds raised towards their revival. The government wants BSNL to turn profitable and for that, the state-run telecom operator is roping in BCG (Boston Consulting Group) to help. BCG will work with BSNL for 34 months and ensure that the telco's costs to operate the business are reduced and also that revenues from operations grow significantly. Further, BCG will draw out a fresh sales and marketing strategy/design for BSNL to better compete with the private telecom companies in the country.
BSNL and MTNL are already earning operating profits, and in the coming years, the government expects the company to product net profits.
