The state-owned company Mahanagar Telephone Nigam Ltd (MTNL) announced that its board of directors has approved the sale of property located in Powai, Mumbai, to the Income Tax Department for a sum of 891.53 crore rupees. This information was published by the company in a report on BSE on Thursday.
The real estate asset is located at Plot-C, Technology Street, Powai, and has a land area of 20,895.60 square meters. The sale will be conducted either through a Government-to-Government (G2G) transfer or via a direct sale.
MTNL specified that this transaction is subject to the official decision of the Income Tax Department, as well as approval from the Presidential Approval and Alternative Mechanism (AM).
The sale takes place amid ongoing financial difficulties faced by MTNL, which is working to monetize its non-core assets. In July, Union Minister Jyotiraditya Scindia stated that the state-owned company's total liabilities amounted to approximately 40,008.52 crore rupees for the financial year 26, while the value of its non-core assets was estimated at around 50,000 crore rupees. The government has identified asset monetization as one way to assist MTNL in meeting these obligations.
Furthermore, Scindia noted in a written reply to the Lok Sabha in July that MTNL's losses had increased to approximately 3,101 crore rupees in financial year 26 compared to 2,616 crore rupees in financial year 22. Meanwhile, total revenue for the same period decreased to 1,469 crore rupees from 1,696 crore rupees.
Moreover, according to an Economic Times report last week, MTNL began servicing a portion of interest payments on its unsecured sovereign guarantee bonds amounting to 24,071 crore rupees using its own funds after monetizing assets, aiming to reduce dependence on government support.