In a significant development for the Indian telecommunications sector, BSNL (Bharat Sanchar Nigam Limited) has emerged as a surprising contender in the property and infrastructure domain. While private giants like Airtel and Jio dominate the user base, BSNL boasts the largest asset portfolio in the telecom industry. After achieving a profit for the first time in 17 years, BSNL is now set to monetize its underutilized properties, including a massive ₹1,900 crore deal involving prime real estate in Kolkata, which could reshape the city’s real estate landscape.
BSNL’s Landmark Land Deal
BSNL has officially announced plans to sell a prime property located at the intersection of AJ Bose Road and Alipore Road, covering a total area of 780 kottahs (approximately 10.67 lakh square feet). Out of this, 630 kottahs are available for development, while 150 kottahs are occupied by a heritage building. The estimated value of this property stands at ₹1,900 crores, with each kottah valued around ₹3 crores in this sought-after area. The government has entrusted the National Land Monetization Corporation with the task of monetizing this valuable asset.
Insights into BSNL’s Manufacturing Unit
Previously, BSNL’s factory was known for producing telecom components, including handsets and equipment boxes. Currently, it primarily manufactures pipes used for laying optical fiber cables. To execute this real estate transaction, BSNL is actively seeking international firms, and a tender has already been issued. Sources indicate that BSNL aims to ideally sell the entire plot in a single bid, and preparations for the sale are in full swing, promising substantial returns for BSNL and the government.
Potential Bidders for the Property
The news of this high-value real estate deal has stirred interest among local realtors. Several industry players, including major companies like Phoenix and Tata Housing, along with local consortiums such as South City and Primark-RDB, are expected to participate in the bidding process. A real estate advisor noted that this could lead to the formation of new consortiums between national and local companies. Siddharth Pansari, President of CREDAI’s Bengal chapter, commented that unlocking and productively utilizing such prime plots is crucial for the city, suggesting potential revenue generation through stamp duty, GST, and development charges.
Funding BSNL’s Revitalization Strategy
The proceeds from the sale of this property will play a pivotal role in BSNL’s revitalization efforts. The government has previously announced a recovery package of ₹80,000 crores for the company, aimed at upgrading its network to 4G and subsequently 5G. Plans already in motion include the installation of over 25,000 new towers across the country, expected to be completed by September 2025. This strategic move positions BSNL to reestablish itself among prominent players like Reliance Jio and Airtel, regaining the market share it has lost in recent years.
BSNL’s First Profitable Quarter in 17 Years
After years of financial struggle, BSNL announced a profit of ₹262 crores in the third quarter—the first profit recorded in 17 years. Telecom Minister highlighted this achievement, while BSNL’s CMD, A. Robert J. Ravi, expressed satisfaction with the company’s financial performance which reflects innovation, customer satisfaction, and aggressive network expansion. Improvements in revenue are projected to exceed 20% by the fiscal year-end. Notably, BSNL has also reduced its financial costs and overall expenditures, resulting in a reduction of losses by over ₹1,800 crores compared to last year.