The government has decided to do away with the auction process for the sale of MTNL assets to state and central government entities, according to people familiar with the matter.
Instead, these buyers will be offered the assets at simple valuation to speed up the process, the people said.
The move is aimed at cutting down the lengthy bidding and valuation procedures, which often take months to complete. MTNL asset monetisation will be carried out in phases, with proceeds used to repay mounting debt, the people said.
Initial valuation of some MTNL assets has been pegged at Rs 6,000–7,000 crore, the people said, adding that the valuation surveys are underway in Delhi and Mumbai to accelerate the monetisation process.
Out of 280 non-core assets identified across MTNL and BSNL, 220 are set to be monetised, according to the people. The government is still consulting on the framework for private buyers.
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