BSNL Targets ₹8,000 Crore From Land, Property Monetisation To Fund Network Expansion

State-run telecom operator Bharat Sanchar Nigam Ltd (BSNL) is looking to monetise its land and property holdings to fund capital expenditure as it continues to expand and modernise its network.

The company is targeting ₹8,000 crore from the monetisation of land and property assets in FY27, with the proceeds earmarked for capital expenditure, according to a senior Department of Telecommunications (DoT) official. Talks for properties worth around ₹3,000 crore are already progressing, while discussions for other properties and residential flats are also underway.

BSNL has a large property portfolio spread across the country, accumulated over decades of operations. The assets being considered for monetisation include a prime property in Mumbai as well as residential flats in the city that have attracted interest from the Income Tax Department, according to the official cited by The New Indian Express.

The asset monetisation programme is part of the government's broader effort to put BSNL's non-core assets to productive use while supporting the company's capital requirements. The National Land Monetisation Corporation has been involved in the valuation and monetisation process for BSNL and MTNL properties. Its records show assets in locations including Mumbai, Kolkata, Hyderabad, Goa and Chennai being considered for monetisation.

BSNL Asset Monetisation

The latest plan comes as BSNL continues to invest in its network and expand its 4G footprint. The company has been rolling out an indigenous 4G network as part of efforts to improve coverage and compete more effectively with private telecom operators.

However, monetising the company's extensive property portfolio has historically been a lengthy process. Government documents have highlighted issues including land-title documentation, encroachments, changes in land use, property mutations and other statutory clearances. High reserve prices have also affected the pace of some transactions.

BSNL's latest target suggests that the government is looking to accelerate the process, with proceeds from asset sales being directed towards capital expenditure rather than relying entirely on budgetary support.

BSNL Financial Position

The asset monetisation push comes against a challenging financial backdrop for the state-owned telecom operator.

BSNL reported a consolidated net loss of ₹1,269 crore in the fourth quarter of FY26, compared with a profit of ₹280 crore in the corresponding quarter a year earlier. For the full financial year FY26, its net loss widened to ₹4,738 crore from ₹2,247 crore in FY25.

Revenue from operations increased 1.7% year-on-year to ₹21,199 crore in FY26, although it remained below the government's target of ₹28,476 crore. Higher network operating expenses, employee costs, depreciation and finance charges continued to weigh on profitability.

BSNL has nevertheless continued to expand its 4G network and use promotional tariff plans to improve its competitive position.

Asset monetisation is also being used by fellow state-run telecom operator Mahanagar Telephone Nigam Ltd (MTNL) to meet its financial obligations.

MTNL owns several prime properties in Delhi and Mumbai, and the government has been pursuing monetisation of its non-core assets. The NLMC has issued proposals for valuation and monetisation of MTNL properties, including assets in Mumbai and Delhi.

The government's approach marks a shift towards using the substantial real estate holdings of both telecom companies to support their financial requirements and network-related investments.

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