New Delhi, October 1 (IANS). State-owned telecom company Mahanagar Telephone Nigam Limited (MTNL) on Thursday said its board has approved the sale of its property in Powai, Mumbai to the Income Tax Department for Rs 891.53 crore.
The property is located at Plot-C, Technology Street, Powai and has a total land area of 20,895.60 square metres, MTNL said in an exchange filing.
The company said the asset will be sold through government-to-government (G2G) transfer or outright sale.
According to the telecom company, the transaction is subject to the formal approval of the Income Tax Department and is being done on the basis of the approval of the President and Alternative Mechanism (AM).
The proposed sale is part of MTNL's efforts to monetize non-core assets. This sale is being done at a time when the government telecom company is facing continuous financial challenges.
Additionally, Union Communications Minister Jyotiraditya Scindia had said in July that MTNL's total liabilities in FY 2025-26 were around Rs 40,008.52 crore, while the value of its non-core assets was around Rs 50,000 crore.
The government has identified asset monetization as one measure to help the company meet its liabilities.
According to data given by the minister in a written reply in the Lok Sabha in July, MTNL's loss increased from Rs 2,616 crore in FY 2021-22 to about Rs 3,101 crore in FY 2025-26.
According to him, the total income of the company declined from Rs 1,696 crore in FY 2021-22 to Rs 1,469 crore in FY 2025-26.
After this news, there has been a rise in the shares of MTNL. MTNL shares were at Rs 25.18, up 9.62 per cent at 1:15 pm on the National Stock Exchange (NSE). It touched the highest level of Rs 26.94 in the trade so far.
–IANS
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