**Subject: Analysis of Proposed Merger and Asset Monetization of MTNL and BSNL**
This document summarizes key information from Lok Sabha Unstarred Question No. 1813, answered on July 30, 2025, regarding the proposed merger of Mahanagar Telephone Nigam Limited (MTNL) with Bharat Sanchar Nigam Limited (BSNL) and related asset monetization efforts.
**Asset Monetization:** The government denies a proposal to sell 220 out of 280 non-core MTNL and BSNL properties at simple valuation. Asset monetization is ongoing, and updated details are available at https:assetmonetization.bsnl.co.in. Proceeds from monetization are being utilized in accordance with Union Cabinet approvals, including debt repayment.
**Financial Liabilities:** As of July 10, 2025, BSNL's outstanding debt is Rs. 16,327 crore. MTNL's outstanding debt is approximately Rs. 34,576 crore, including Rs. 8,584 crore in outstanding loans to banks.
**Merger Status:** As of July 30, 2025, there is no plan to merge MTNL with BSNL. However, the Committee of Secretaries (CoS) recommended an operational merger, which was approved by the government. A Service Agreement between the Public Sector Undertakings (PSUs) is in effect from January 1, 2025.
**Contact:** Further inquiries can be directed to the Minister of State for Communications and Rural Development, Dr. Pemmasani Chandra Sekhar.
Key Entities Referenced
MTNL: Mahanagar Telephone Nigam Limited, a state-owned telecommunications service provider in India.
BSNL: Bharat Sanchar Nigam Limited, a state-owned telecommunications service provider in India.
SHRI KALYAN BANERJEE: Member of Parliament who posed the question in Lok Sabha.
MINISTRY OF COMMUNICATIONS: The Indian government ministry responsible for telecommunications and postal services.
LOK SABHA: The lower house of the Parliament of India.
DR. PEMMASANI CHANDRA SEKHAR: Minister of State for Communications and Rural Development, who provided the answer to the question.
Union Cabinet: The cabinet of ministers in the Union Government of India.
Committee of Secretaries: A committee comprising senior-most civil servants in the Government of India.
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS
DEPARTMENT OF TELECOMMUNICATIONS
LOK SABHA
UNSTARRED QUESTION NO. 1813
ANSWERED ON 30TH JULY, 2025
PROPOSED MERGER OF MTNL WITH BSNL
1813. SHRI KALYAN BANERJEE:
Will the Minister of COMMUNICATION be pleased to state:
(a) whether the Government has proposed for asset monetisation in phases with 220 out of 280
non-core MTNL and BSNL properties set to be sold at simple valuation;
(b) if so, the detail of report on the proposal and valuation proposed to be offered for sale and
the expert committee/valuation committee report thereon;
(c) whether it is a fact that as on date total liabilities of BSNL is around Rs.23500 crore and
MTNL with Rs.33,568 crore with loan defaults over Rs.8000 crore, if so, the details thereof;
(d) whether the monetization can repay the liabilities therefor, if so, the details thereof; and
(e) whether it is also a fact that the Government proposes to merge MTNL with BSNL, if so,
the details of unused properties available with MTNL and BSNL in the country thereof, State-wise?
ANSWER
MINISTER OF STATE FOR COMMUNICATIONS AND RURAL DEVELOPMENT
(DR. PEMMASANI CHANDRA SEKHAR)
(a) & (b) No Sir, there is no such proposal of sale of 220 out of 280 non-core properties at
simple valuation.
(c) BSNL's current outstanding debt as on 10.7.2025 is Rs. 16,327 crore. MTNL has outstanding
debt of approx. Rs 34,576 crore with outstanding loans to Banks of Rs 8,584 crore.
(d) The proceeds of monetization are being utilized in accordance with the approval of Union
Cabinet, which includes debt repayment.
(e) At present, there is no plan to merge MTNL with BSNL. However, the Committee of
Secretaries (CoS) recommended operational merger of MTNL with BSNL, and the same was
approved by the Government. In this regard, the Service Agreement signed between the PSUs is in
effect from 01.01.2025. Updated details of assets identified for monetization are available at
https://assetmonetization.bsnl.co.in
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