According to media reports, MTNL has submitted plans to the Department of Investment and Public Asset Management (DIPAM) to monetise Rs 6,200 crore worth assets that include 36 acres of land bank in Mumbai, shops-cum-offices in Delhi, and residential quarters in Noida etc.
The company has received interest from 14,387 employees for the voluntary retirement scheme (CRS) which will result in annual savings of Rs 1,700 crore for MTNL. The loss-making PSU has a total of 18,422 employees. The company looks to realise around Rs 5,000 crore from the sale of its land parcels located at prime locations of Mumbai like Vasai hill, Mulund, Simpholi etc, reports added.
In October 2019, the Union Cabinet approved the proposal for revival of BSNL and MTNL by administrative allotment of spectrum for 4G services, debt restructuring by raising of bonds with sovereign guarantee, reducing employee costs, monetisation of assets and in-principle approval of merger of BSNL & MTNL.
The MTNL stock has advanced 50.91% in last three months as compared to a 22% rise in BSE Telecom index.
On consolidated basis, the company reported a net loss of Rs 950.17 crore in Q2 September 2019 as against a net loss of Rs 859.23 crore in Q2 September 2018. Company’s net sales declined 16.7% to Rs 388.53 crore on YoY basis.
State-run MTNL is a telecommunications service provider in the metro cities of Mumbai and New Delhi in India.