BSNL Starts Land Monetisation to Bail Out of Current Financial Crisis

BSNL telecom factories at Mumbai, Kolkata, West Bengal, Ghaziabad, Jabalpur and wireless stations, as well as other offices and staff colonies, have been included in the list of land parcels to be monetised

By July 11th, 2019 AT 4:19 PM
  • The government is currently preparing a relief package for MTNL and BSNL
  • The internal estimation of land valuation stood at Rs 20,000 crore in 2018-19

Public sector Bharat Sanchar Nigam Ltd (BSNL) is in the process identifying land parcels all over the country for monetisation, which as per its internal estimate is valued at Rs 20,000 crore in 2018-19. The state-run telecom major’s corporate office has circulated a list of land parcels which are proposed for monetisation through the Department of Investment and Public Asset Management (DIPAM) in the first instance. The time-bound monetisation of land assets, mobile towers and fibre networks will help BSNL earn some money in these tough times of falling revenues and rising losses.

“The total area of land parcels, which are spread across the country and have in-built structures, buildings and factories, is 32.77 lakh square metres (sq m) and the spareable land parcel is 31.97 lakh sq m,” said an earlier BSNL corporate office letter to its circles seeking their comments, as reported by IANS.

“The fair value of spareable parcel as on April 1, 2015, is Rs 17,397 crore and the estimated present fair value of these lands is Rs 20,296 crore. The enhancement in valuation is based on cost inflation index for FY 2014-15 as 240 and FY 2018-19 as 280.

“The valuation of these land parcels is proposed to be done along with the structures lying in the parcel after the in-principle approval for sale or long term lease by the government. The cost of buildings has not been included in the Fair Value of land parcels”, it added.

BSNL telecom factories at Mumbai, Kolkata, West Bengal, Ghaziabad, Jabalpur and wireless stations, as well as other offices and staff colonies, have been included in the list of land parcels to be monetised.

Some of these parcels are mutated, while some are not, and the status of some of these parcels are freehold and some are on leasehold.

Struggling with poor cash flows from services and a severe financial crunch due to a huge workforce of 1.76 lakh, BSNL is looking for non-core asset monetisation under the broad policy of the government where DIPAM is the nodal department.

BSNL is expected to post losses of over Rs 14,000 crore for the financial year 2018-19, while its revenue is slated to be around Rs 19,308 crore as per a written reply to the Lok Sabha by Telecom and IT minister Ravi Shankar Prasad.

Salary expenditure is set to be a massive 75 per cent of the firm’s total expenses at Rs 14,488 crore. Its provisional loss in 2015-16 was Rs 4,859 crore, Rs 4,793 crore 2016-17, and Rs 7,993 crore in 2017-18.

BSNL’s loss is estimated to balloon to Rs 14,202 crore in 2018-19.

“Low tariffs due to fierce competition in the mobile segment, high staff cost and absence of 4G services (except in few places) in the data-centric telecom market are the main reasons for losses of BSNL,” Prasad said.

In line with sector trends, BSNL has also seen a dip in its revenue after the entry of Reliance Jio in the market in 2016.

The company’s revenue is pegged at around Rs 19,308 crore for 2018-19, compared with Rs 25,071 crore in 2017-18 and Rs 31,533 crores in 2016-17.

The government is planning a revival scheme for BSNL and MTNL.

Read more on:

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

oldest most voted
Inline Feedbacks
View all comments

Invest in network instead somehow by reducing unncessary staff.


Ab railway bech Khao…aur bullet train banao.

Recent Posts

Vodafone Offering 1 Year Extended Warranty on Vivo X50 Series

Vodafone is offering its customers a one year extended warranty on the Vivo X50 series smartphones. The Vivo X50 Pro...

Instagram Reels vs Roposo Vs Mitron: Ultimate TikTok Alternative

Instagram Reels has been officially launched by Instagram for users all across the world on August 5, 2020. It is...

BSNL Broadband Plans Under Rs 5,000 Offering 100 Mbps Speeds

Bharat Sanchar Nigam Limited (BSNL) is one of the oldest broadband internet service providers of the country. The telco has...