New Delhi: The Centre is targeting more than ₹15,000 crore in revenue through the monetisation of land and property assets held by central public sector enterprises (CPSEs) in the financial year 2026–27. Properties belonging to telecom companies MTNL and BSNL, along with assets held by RINL, ITI and Hindustan Insecticides Ltd (HIL), are among those expected to contribute to the target.
The exercise is being undertaken through the National Land Monetisation Corporation (NLMC), a Finance Ministry-owned entity tasked with unlocking value from surplus and non-core land, buildings and other assets held by central public sector enterprises and government entities.
According to a government official quoted in the report, the NLMC has completed land monetisation worth around ₹9,000 crore so far. The FY27 target represents a continued effort to put underutilised public-sector properties to productive use and mobilise funds for companies carrying debt.
MTNL properties form a significant part of the plan
MTNL’s land assets are expected to make a substantial contribution to the government’s monetisation programme. The Centre is targeting additional monetisation of MTNL properties worth ₹4,000–5,000 crore over the next two years.
The proposed exercise comes at a time when the telecom company continues to carry a considerable debt burden. Its outstanding debt is estimated at around ₹10,000 crore, according to the government official cited in the report.
Unlocking value from properties that are not required for the company’s core operations could provide an avenue to mobilise funds. The expected proceeds from MTNL’s assets are therefore an important component of the government’s broader plan to monetise public-sector land.
However, the ₹4,000–5,000 crore figure is a target for the next two years. It should not be interpreted as revenue already received or as a completed sale.
BSNL, RINL, ITI and HIL assets also in the pipeline
Apart from MTNL, the government has identified property assets belonging to Bharat Sanchar Nigam Ltd (BSNL), Rashtriya Ispat Nigam Ltd (RINL), Indian Telephone Industries Ltd (ITI) and Hindustan Insecticides Ltd (HIL) as part of the potential pipeline for FY27.
These enterprises hold land and buildings that are not necessarily required for their principal business activities. The government’s approach is to identify such surplus or non-core properties and explore ways to unlock their economic value.
The inclusion of companies from the telecom, steel, telecommunications equipment and chemicals sectors indicates that the monetisation programme is not limited to one industry. Instead, it covers assets held by multiple central public sector enterprises.
The report does not specify the individual properties, their locations, the proposed transaction timelines or the expected contribution of each of these organisations to the FY27 target.
What is the National Land Monetisation Corporation?
The National Land Monetisation Corporation is a government-owned entity under the Ministry of Finance. Its mandate is to facilitate the monetisation of surplus and non-core land and buildings held by CPSEs and other central government entities.
Public-sector organisations may own properties that are not essential to their current operations. Such assets can represent capital that remains tied up instead of being used for productive purposes. The NLMC’s role is to help unlock value from these properties.
Land monetisation is distinct from the routine sale of goods or services by a company. It concerns the economic use of property assets that an organisation does not need for its core activities. The government’s stated objective is to mobilise resources from these holdings and make better use of underutilised public assets.
The exact method and terms of each transaction can depend on the asset concerned. The report does not provide details of the proposed sale or monetisation process for the individual properties listed in the FY27 pipeline.
Proceeds could support debt reduction and balance sheets
The government views the programme as a way to release capital tied up in non-core properties. For companies carrying substantial debt, proceeds from asset monetisation could offer an additional source of funds to reduce liabilities and strengthen their balance sheets.
MTNL is a prominent example in the current plan, given the estimated ₹10,000 crore debt burden and the government’s expectation of monetising properties worth ₹4,000–5,000 crore over two years.
The potential contribution from BSNL, RINL, ITI and HIL will also be relevant to the overall target. However, the amount that each enterprise may generate has not been disclosed in the report.
The government has already completed monetisation worth around ₹9,000 crore through the NLMC, according to the official cited. The proposed target of more than ₹15,000 crore for FY27 signals an effort to expand the programme.
FY27 target will depend on the asset pipeline
The Centre’s target of more than ₹15,000 crore places the NLMC’s land monetisation programme among the significant asset-mobilisation initiatives planned for FY27. The identified properties of MTNL, BSNL, RINL, ITI and HIL are expected to form part of the pipeline.
The eventual outcome will depend on the properties taken up for monetisation and the value realised from them. The government has outlined the broad target and identified the public-sector entities involved, but detailed asset-wise estimates and transaction schedules have not yet been provided in the report.
For the companies concerned, the programme could help unlock value from properties outside their core operational requirements. For the Centre, it offers a route to mobilise resources from existing public assets while seeking to improve the financial position of debt-laden public-sector enterprises.