Bharat Sanchar Nigam Limited (BSNL) is planning to rake in roughly Rs 1200 crore through the land sale. The development comes through a TOI report saying that BSNL is gearing to monetise around 54.62 acres of land very soon in Chennai. The estimated value of the land on sale is Rs 1250 crore. As per the publication, the sale should complete by the next year.
The state-run telco has properties in both residential and commercial hotspots of Chennai. BSNL is looking to sell land in areas including Flower Bazaar, P V Cherian Crescent Road off Ethiraj Salai in Egmore, Royapettah, Triplicane, and Vyasarpadi.
BSNL will be selling both land and buildings that are not in use. The state-run telco saw a few of its staff quarters in Chennai getting vacant after a large number of employees last year opted for the voluntary retirement scheme (VRS).
BSNL Can Use the Money for 4G Rollout
While the approximate value (Rs 1200 crore) that is expected to come through the sale of the land assets won’t create a big difference for BSNL, it will still be better than nothing. The telco can use the money for 4G rollout in the Tamil Nadu and Chennai circle.
The expected time frame for the process to be complete for sale is next year. That will be the year when we might see BSNL getting aggressive with 4G while all the other operators are rolling out 5G networks.
These properties should see high interest from the builders' community. Multiple land parcels on sale from BSNL could be turned into residential property. BSNL will take up all the money that it can since rolling out 4G networks across India won’t be cheap.
The telco has already asked for help from the Department of Telecommunications in regards to capex requirements for 4G. While BSNL is EBITDA positive, the telco will require a lot of money for providing blanket 4G coverage.