BSNL plans to monetize its massive real estate

BSNL plans to monetize its massive real estateState-owned Bharat Sanchar Nigam Ltd. (BSNL) has drawn a blueprint to generate an estimated of Rs 8,000 crore in additional revenue by monetization of its massive real estate and hiving off its towers into a separate company.

The loss-making telecommunication giant has plans to develop its land bank of around 4,400 hectares commercially. It has already initiated pilot project at ten locations. By renting the commercially developed land, the company hopes to pocket more than Rs 250 crore every year.

The blueprint also includes plan to hive off tower assets so as to lease out space to private companies and fetch rent from that. BSNL has more than 70,000 towers across the country. As per a presentation made by BSNL to the Telecom Ministry, the telecommunications giant is expecting to pocket revenue of Rs 1,600 crore this way over a period of five years.

The state-run company has also plans to establish manufacturing facilities for telecom equipment in collaboration with established technology companies. The company aims to fetch Rs 500 crore from the partnership deals.

Another major project is to offer broadband connectivity to around 1.5 million schools across the country. The company has plans to charge Rs 5,000 per year for one connection offering Internet speed of 512 kb/s.

The radical plans aim to help loss-making BSNL turn profitable.