Centre Asks State Govts to Use BSNL & MTNL for Data Security Amid Revival Push

Prime Minister Narendra Modi-led government has urged the state government to use state-run telecom operators' services to ensure data security. In a letter written by the Department of Telecommunications (DoT) to various state governments, the centre has recommended the use of Bharat Sanchar Nigam (BSNL) and Mahanagar Telephone Nigam (MTNL), the Economic Times reported. This comes at a time when the centre is pinning its hope on government-run telecom companies and is taking initiatives to revive them. 

“The Union Cabinet, inter-alia, had approved the mandatory utilisation of capacities of BSNL and MTNL for internet, landline, and leased line requirements by the Central government, in view of the data security needs,” said DoT in a letter, according to the Economic Times. “On similar lines, state governments were also requested to utilise the network capacities of BSNL for their telecom requirements,” the letter stated. 

Also Read: Modi Govt Eyes Rs 1,000 Cr Fundraising for BSNL, MTNL Revival in FY26

Earlier on April 8, DoT secretary Neeraj Mittal had reportedly requested all departments, agencies and PSUs of the state government to use BSNL and MTNL for internet, broadband, landline and leased line requirements. 

As a part of its revival bet, the government has infused funds worth Rs 3.22 lakh crore in BSNL and MTNL since 2019. Apart from this, the Modi government has planned to raise around Rs 1,000 crore in the present financial year to pump more funds into the state-run telecos to reduce debt and improve liquidity. MTNL’s total debt stood at Rs 33,000 crore as of March 31, 2025, and BSNL’s liability stood at around Rs 23,297 crore as of November last year. 

To raise funds, the government is mulling to sell or lease land parcels owned by the two telecom companies. However, the monetisation move will require the central and state governments to be on the same page, as land is a state list subject. 

“BSNL has two or three parcels under consideration. The total land value from both BSNL and MTNL is approximately Rs 1,000 crore, which is likely to be monetised this year,” MoneyControl had earlier reported, citing an official source. “Land is not an easy subject. It is a state subject. All the documents, everything has to be in place,” the official added.