**Executive Summary**
This document is a record of discussion from the 133rd meeting of the PPPAC (Public Private Partnership Appraisal Committee), held on July 14, 2025, regarding the Department of Telecommunication's (DoT) proposal to drop the monetization of BSNL (Bharat Sanchar Nigam Limited) towers. The DoT submitted the proposal based on recommendations from the Core Group of Secretaries on Asset Monetization (CGAM). PPPAC members observed inconsistencies in BSNL's analysis of leasing and OMT (Operate-Maintain-Transfer) models for tower monetization. DoT/BSNL must now undertake a fair and consistent assessment of both models, provide a detailed financial analysis, and share a comprehensive report for further consideration.
**Key Points / Main Content**
* **Meeting Overview:**
* The 133rd PPPAC meeting took place on July 14, 2025, to discuss dropping the BSNL tower monetization proposal.
* The PPPAC previously recommended the BSNL tower monetization project in its 111th meeting on April 6, 2023.
* The DoT decided to drop the monetization proposal, which led CGAM to request a review by PPPAC.
* **BSNL's Presentation:**
* BSNL presented a comparison of leasing and OMT models for tower monetization.
* BSNL argued that the leasing model offered greater stability and predictability, considering market valuations and tower costs.
* **PPPAC Observations:**
* The presentation lacked a clear explanation of technological or business model changes since 2023 that prompted DoT to reconsider the PPP model.
* BSNL's financial calculations were inconsistent, factoring additional use cases only into the leasing model.
* The tenancy ratios used in the financial models for the leasing and PPP model were inconsistent with previous proposals.
* The comparison between leasing and OMT models did not properly account for risk allocation or capex and maintenance costs.
* **PPPAC Recommendation:**
* DoT/BSNL is required to conduct a fair and consistent assessment of both the leasing and OMT models.
* DoT/BSNL must also provide a detailed financial analysis and share a comprehensive report for further consideration.
**Impact Analysis**
**Department of Telecommunication (DoT) / BSNL**
* **Impact:** DoT/BSNL is impacted by the need to conduct a new assessment of the tower monetization plan. The original recommendation for an Operate-Maintain-Transfer (OMT) concession for monetization of telecom towers is being reconsidered.
* **Action Required:** DoT/BSNL must undertake a fair and consistent assessment of both the leasing and OMT models, along with a detailed financial analysis, and share a comprehensive report for further consideration.
**PPPAC Members**
* **Impact:** PPPAC members are impacted as they are responsible for evaluating the revised proposal from DoT/BSNL regarding the monetization of BSNL towers.
* **Action Required:** Review the comprehensive report submitted by DoT/BSNL and provide further recommendations based on the updated analysis of leasing and OMT models.
Key Entities Referenced
Public Private Partnership Appraisal Committee (PPPAC): Committee responsible for considering the proposal of the Department of Telecommunication for dropping monetization of BSNL towers.
Department of Telecommunications (DoT): The department that proposed the monetization of BSNL towers and later decided to drop it.
Bharat Sanchar Nigam Limited (BSNL): The state-owned telecommunications company whose towers are the subject of the monetization proposal.
Ministry of Finance: The ministry under which the Department of Economic Affairs and the Infrastructure Finance Secretariat operate.
F.No.1/14/2022-PIU
Government of India
Ministry of Finance
Department of Economic Affairs
Infrastructure Finance Secretariat
ISD Division
(PIU)
4 Floor, STC Building,
Janpath New Delhi-01
Dated: 12" September 2025
Record of Discussion
Subject: Record of Discussion of the 133 meeting of the PPPAC for considering
the proposal of the Department of Telecommunication for dropping monetization of
BSNL towers.
Reference: 133 meeting held on 14" July 2025.
Sir/Madam,
The undersigned is directed to forward the Record of Discussion of the 133 meeting
of the PPPAC held on 14" July 2025, under the Chairmanship of the Secretary (Economic
Affairs), for information and necessary action.
2. This issues with the approval of the Competent Authority.
(Arya Balan Kumari)
Joint Director (PIU)
011-2370 1219
To,
1. Secretary, Department of Expenditure, North Block, New Delhi
2. CEO, NITI Aayog, Yojana Bhawan, New Delhi
3. Secretary, Department of Telecommunications, Sanchar Bhawan, New Delhi
4. Secretary, Department of Legal Affairs, Shastri Bhawan, New Delhi
5. CMD, BSNL, Sanchar Bhawan, New Delhi
Copy to:
1. Sr. PPS to Secretary (EA)
2. PSO to JS (ISD)
Page 1 of 4Subject: Record of Discussion of the 133 meeting of the PPPAC for considering the
proposal of the Department of Telecommunication for dropping monetization of BSNL
towers
The 133% meeting of the PPPAC was held on 14" July 2025 at 14:30 Hours to consider
1.
the above-mentioned project.
List of attendees is placed at Annexure I.
Joint Secretary (JS) (ISD) welcomed the attendees to the meeting and informed that the
PPPAC, in its 111" meeting held on 6" April 2023, recommended the project proposal of
the Department of Telecommunication (DoT) for ‘Monetization of Telecom Tower Assets of
BSNL under an Operate-Maintain-Transfer (OMT) concession’ for approval of the
Competent Authority. Later on, the DoT decided to drop the said proposal. Once
recommended, the Sponsoring Ministry/Department obtains the approval of the
Competent Authority and .proceeds to bid out the project. If, however, the
Ministry/Department chooses not to pursue/drop the project further, there is no
requirement to approach the PPPAC again for revalidation or opinion. However, in this
instant case, the Core Group of Secretaries on Asset Monetization (CGAM) in its meeting
held on 6.02.2025, recommended that the DoT should submit a proposal of dropping the
monetization of BSNL to PPPAC within 15 days for its opinion.’ Apropos, the DoT has
submitted to PPPAC requesting dropping the monetization of BSNL towers.
With the permission of the Chair, JS (ISD) requested the Chairman and Managing Director
(CMD), Bharat Sanchar Nigam Limited (BSNL), to make a presentation. The CMD (BSNL)
made a presentation on the proposal. In its presentation, BSNL provided a comparison of
the leasing and OMT model (PPP) for tower monetization. He said that the OMT model
could potentially unlock upfront resources, while the leasing model offers a steady annual
revenue stream, translating into higher cumulative value over the longer term. It was also
informed that taking into account recent market valuations and the cost profile of BSNL’s
legacy towers, leasing model presently reflects relatively greater stability and predictability,
whereas the OMT approach, though offering immediate inflows, may be more sensitive to
prevailing sectoral dynamics.
The following observations were made by the PPPAC members:
i. Shifts in technology and business models: The presentation does not highlight
the specific technological or business model changes since 2023 that led DoT to
step back from the PPP mode for BSNL’s tower monetization. In addition, what
would be the impact of such changing technological or business model on the
existing revenue stream of the BSNL.
ii, | Revenue Streams Not Uniformly Considered: In the BSNL financial calculations,
additional use cases (EV charging, micro data centers, etc.) were factored in only
under the leasing model, but not for the OMT model projections, which makes this
comparison unreasonable.
Page 2 of 4iii. Different Tenancy Ratios: Leasing assumes a tenancy ratio of 1.7, while PPP
assumes only 1.1. This inflates leasing revenues relative to OMT model outcomes.
Whereas, in the earlier PPP proposal put-up by the BSNL, higher tenancy ratio
was envisaged for the PPP model based on private efficiencies.
iv. Risk Allocation Not Reflected: In the OMT model, operational and technological
risks and expenditure shift to the concessionaire, whereas under leasing, they
remain with BSNL. The comparison does not properly account for this differential.
v. | Capex and Maintenance Costs: BSNL’s higher cost of O&M of legacy towers was
highlighted, but its impact was not consistently factored across models. The OMT
model may mitigate these costs, while leasing leaves them with BSNL.
. The PPPAC unanimously recommended that DoT/BSNL shall undertake a fair and
consistent assessment of both the leasing and OMT model (PPP), along with a detailed
financial analysis, and share a comprehensive report for further consideration.
The meeting ended with a vote of thanks to the chair.
Page 3 of 4Annexure |
List of the participants of the 133 meeting of the PPPAC
a) Department of Economic Affairs, Ministry of Finance
i. Ms. Anuradha Thakur, Secretary (EA)
ii. | Shri Baldeo Purushartha, JS (ISD)
ii. | Shri Rahul Singh, Director (PIU)
iv. | Shri Rajender Singh, SO (PIU)
b) NITI Aayog
i. Shri. Partha Reddy, Programme Director
c) Department of Expenditure
i. Ms. Bhumika Verma, Director
d) Department of Legal Affairs
i. Shri Jagat Prakash, Assistant Legal Adviser
e) Ministry of Telecommunication
i. | Shri Manish Sinha, Member (Finance)
ii. 2. Shri Kashi Nath Jna, DDG (Asset Mgmt.)
ii. 3. Shri Preetinder Singh Padda, Director (Asset Mgmt.)
f) BSNL
i. Shri Robert J Ravi, CMD BSNL
ii. Shri YN Singh, SR GM, BSNL
KKK
Page 4 of 4