BSNL Looks To Asset Sales To Fund Bulk Of ₹77,000-Cr Capex Plan

State-run telecom operator BSNL is banking on asset monetisation to finance a major share of its proposed ₹77,000-crore capital expenditure plan, with the government expecting significant proceeds from the exercise over the current and next financial year, Moneycontrol reported.

Under the five-year roadmap drawn up by the Department of Telecommunications (DoT), the company plans to add 2 lakh new 4G sites, reinforce its network infrastructure, and extend 5G services to high-traffic and strategically important locations.

Talks With Finance Ministry Underway

"DoT has proposed to the government that a significant part would also come from BSNL's own monetisation. There have been discussions with the finance ministry, which are ongoing. We are awaiting the outcome of those deliberations. While monetisation has been a slow journey, we now have a very rich pipeline of proposals," an official told Moneycontrol.

Proceeds from the monetisation drive are expected to flow in over this fiscal year and the next, easing the funding burden for BSNL's expansion plans, the report said.

The telco already runs over 1.25 lakh towers nationwide and intends to keep adding to this count. Newer towers being rolled out use more advanced technology than earlier installations, the official said. DoT expects the fresh capital push to help BSNL turn operationally profitable by FY29 and push its network coverage to 98% of the country.

Separately, Mahanagar Telephone Nigam Ltd (MTNL) has begun using proceeds from its own asset monetisation to service sovereign debt obligations, marking a shift from its earlier reliance on government support, sources said. Officials said future bond repayments by MTNL are also expected to be met through such proceeds.

BSNL's new capex plan comes after it spent ₹26,022 crore in FY25, which DoT called the company's highest-ever annual capital expenditure. That spending went mainly into 4G rollout, upgrading power infrastructure, and expanding fibre networks under the BharatNet programme.

Briefing a parliamentary panel, DoT said capital infusion for FY27 had gone up by ₹21,588 crore, sought under the government's approved revival package for BSNL. This amount is separate from the ₹77,000-crore, five-year plan.

Government capital infusion into BSNL overall rose to ₹71,940.02 crore in FY25, from ₹56,785.04 crore the year before, DoT told the panel.

To support the 4G push, BSNL has placed orders for over 26,300 additional 4G BTS sites with Tata Consultancy Services (TCS) and state-owned ITI. By the end of April, it had installed 105,290 indigenously built 4G sites, and has begun rolling out 5G services in Delhi, DoT informed the committee.

For the June quarter, BSNL posted a consolidated net loss of ₹1,280 crore, wider than the ₹1,007 crore loss a year earlier but narrower than the ₹1,419 crore loss in the preceding quarter. Revenue climbed 4.2% year-on-year to ₹5,306 crore, led by a 12% rise in its mobility business to ₹2,282 crore. Its mobile subscriber base grew to 93 million, up from 92.9 million in the previous quarter and 90.5 million a year earlier, as per TRAI data.