According to government officials, the Centre aims to raise more than ₹15,000 crore in FY27 by selling unused land and buildings belonging to public sector companies. The responsibility for implementing the plan has been assigned to the National Land Monetisation Corporation (NLMC), a government-owned company operating under the Ministry of Finance.
NLMC is responsible for monetising land and buildings owned by the central government and public sector companies that are no longer required for their core business operations. The initiative aims to unlock the value of these unused assets and generate additional revenue for the government.
MTNL's properties are a major component of the proposed monetisation drive. The government plans to raise ₹4,000-5,000 crore by selling the company's properties over the next two years. MTNL currently has debt of approximately ₹10,000 crore. The proceeds from the proposed asset sales could be used to reduce its debt burden and improve its financial position.
Apart from MTNL, the government has also included properties belonging to Bharat Sanchar Nigam Limited (BSNL), Rashtriya Ispat Nigam Limited (RINL), Indian Telephone Industries (ITI) and Hindustan Insecticides Limited (HIL) in the plan. These companies hold several land parcels and buildings that are not currently required for their core business operations. The government intends to monetise these assets to generate funds.
According to a government official, NLMC has already completed the monetisation of land and properties worth approximately ₹9,000 crore.
Through this initiative, the government aims to unlock funds tied up in unused public sector assets. The proceeds could provide additional financial resources to these companies, helping them reduce their debt burdens and strengthen their financial positions. With more than ₹15,000 crore targeted for FY27, the monetisation drive is set to cover several major public sector companies, with MTNL emerging as a key contributor.
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