BSNL Plans ₹77,000 Crore Capex Push, Eyes Asset Monetisation To Fund 4G, 5G Expansion

State-owned telecom operator Bharat Sanchar Nigam Ltd (BSNL) is looking to unlock value from its extensive land and property holdings to finance a major network expansion programme worth Rs 77,000 crore over five years.

According to a report by Moneycontrol, the Department of Telecommunications (DoT) has proposed that a substantial portion of the investment could come from BSNL's own asset monetisation.

Discussions between the DoT and Finance Ministry are currently underway, with the government expecting significant proceeds during the current and following financial year.

BSNL targets Rs 8,000 crore from assets

BSNL is targeting Rs 8,000 crore from land and property monetisation in the current financial year, with the proceeds expected to be deployed towards capital expenditure.

The telecom company has a sizeable property portfolio spread across the country. Some of the assets being considered include a prime property in Mumbai and residential flats owned by BSNL in the city. These properties have also attracted interest from the Income Tax Department.

Officials acknowledged that the monetisation process has moved slowly in the past but said BSNL now has a stronger pipeline of potential transactions.

The government's five-year investment plan includes the deployment of 2 lakh additional 4G sites, network upgrades and the rollout of 5G services in high-traffic and strategically important areas.

Network expansion aimed at FY29 breakeven

The planned investment is expected to significantly expand BSNL's network beyond its existing base of more than 1.25 lakh telecom towers. Officials said newer tower deployments are also technologically more advanced than earlier installations.

The expansion is aimed at taking BSNL's nationwide coverage to around 98% and helping the telecom PSU achieve operational breakeven by FY29.

Asset monetisation is also playing a role in the finances of fellow state-run telecom operator Mahanagar Telephone Nigam Ltd (MTNL). The company has recently used proceeds from monetising its assets to service sovereign debt obligations, marking a shift from its earlier reliance on government funding.

Government officials expect MTNL's bond-servicing requirements to continue being supported through asset monetisation proceeds.