Lok Sabha Question No. 1324 (UNSTARRED), answered on 2020-09-19
Subject: Asset Monetisation of MTNL
Ministry: FINANCE
Asked by: Shrirang Appa Barne, Sanjay Sadashivrao Mandlik, Bidyut Baran Mahato, Sudheer Gupta

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF INVESTMENT AND PUBLIC ASSET MANAGEMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 1324

TO BE ANSWERED ON SATURDAY, SEPTEMBER 19,  2020 BHADRAPADA 28, 1942 (SAKA)

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## Asset Monetization of MTNL

1324. SHRI SHRIRANG APPA BARNE:

SHRI SANJAY SADASHIVRAO MANDLIK:

SHRI BIDYUT BARAN MAHATO:

SHRI SUDHEER GUPTA:

Will the Minister of FINANCE be pleased to state:

- (a)  whether  the  MTNL  has  submitted  any  plans  to  the  Department  of  Investment  and  Public Asset Management to monetize assets in prime locations of Mumbai and Delhi;
- (b) if so, the details thereof and the time by which it is likely to be finalized;
- (c) the details of amount likely to be accrued by the company from the sale of prime properties in different parts of the country; and
- (d) the other measures taken/being taken by Ministry to revive the MTNL?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

## (SHRI ANURAG SINGH THAKUR)

- (a)          MTNL  has  submitted  a  set of  assets  for monetization  through the  DIPAM  Framework. The assets include land, staff quarters and telephone exchange in Mumbai. No property in Delhi is presently under monetization through the DIPAM Framework.
- (b)        Details  of  properties  in  Mumbai  which  are  presently  under  monetization  through  the Department  framework  are  enclosed  at  the  Annexure.  International  Property  Consultants  have been appointed for end to end transaction advice on monetization of these properties. The asset
- monetization process is a complex one involving multiple stakeholders and agencies. A specific time frame for completion of these monetization transactions cannot be defined at present.
- (c)        The  value  at  which  the  assets  would  be  monetized  would  depend  on  the  feasibility  of monetization  of  the  asset,  the  monetization  model  and  the  market  conditions  prevailing  at  the time of monetization. It would be difficult to anticipate the sale proceeds presently.
- (d)       According  to  the  Department  of  Telecommunications,  the  Government  approved  the revival  plan  for  MTNL  on  23.10.2019.  The  revival  plan  inter-alia,  includes  the  measures  to reduce the Staff cost through a Voluntary Retirement Scheme (VRS) for employees of age above 50  years  for  the  employees  of  MTNL,  Administrative  allotment  of  Spectrum  to  MTNL  for providing 4G service, asset monetization, Debt restructuring by raising of Sovereign Guarantee Bonds and in-principle approval for merger of BSNL/MTNL.

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## Assets of MTNL in Mumbai

|   S.No | Asset                                 | Details              | Size                             |
|--------|---------------------------------------|----------------------|----------------------------------|
|      1 | Vasari Hill, Malad, Mumbai            | Staff Qtr            | 1.36 acres                       |
|      2 | Mulund, MTNL, Mumbai                  | Tel Exchg &Staff Qtr | 2 acres                          |
|      3 | Eksar-1 Main Land, MTNL Mumbai        | Land Parcel          | 4.94 acre land                   |
|      4 | Eksar-1 Additional Land, MTNL, Mumbai | Land Parcel          | 1.08 acre land                   |
|      5 | Eksar-II Shimpoli, MTNL, Mumbai       | Land Parcel          | 26.25 acre land                  |
|      6 | Staff Quarters Oshiwara, MTNL, Mumbai | Staff Qtr            | 20 Flats (total area 817.6 sq m) |

## Annexure