Govt plans to transfer BSNL land, debt to SPV; assets undervalued, says union

The government is mulling transfer of land assets and loans of loss-making BSNL to a special purpose vehicle in an effort to make the state-owned telecom firm a debt-free entity.

However, the BSNL Employees Union has alleged that the land parcels proposed to be transferred to the SPV at a value of ₹20,210 crore are in prime locations in big cities and are “grossly undervalued”.

The BSNL management denied the allegations saying the valuation has been done only on an indicative basis and final valuation will be done before disposing the proposed land parcels. The SPV is proposed to sell the land parcel and pay off BSNL debt estimated to be around ₹15,000 crore.

“It is astonishing to note that in the name of monetisation of lands, for the purpose of making BSNL a debt-free company, BSNL’s lands are being transferred to the SPV at a “throw-away price,” the union said in a letter to the Telecom Secretary.