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Noida Property News: he real estate bug has bitten
Mahanagar Telephone Nigam (MTNL) too. The public sector telecom company is
in talks with builders to develop commercial properties on the large
tracts of land it owns in prime locations across Mumbai, Delhi and the
National Capital Region (NCR). The first tender for developing a
commercial centre on MTNL’s land in Noida, near Delhi, could be out
anytime now. This piece of land spread over 50 acres near the National
Highway 24 could fetch around Rs 900 crore for the company. This is almost
10% of MTNL’s market cap, which was Rs 10,162 crore on January 18. MTNL
shares were marginally down at Rs 161.30 on Thursday. |
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“MTNL is in the process of preparing the tender to
develop the property near NH-24. Besides, it is also identifying surplus
land in other places,” sources told ET.
With dwindling earnings, the PSU is forced to generate revenues from other
sources as its core telecom business remains restricted to Delhi and
Mumbai. MTNL’s net profit dipped 25% to Rs 121 crore in the second quarter
of this fiscal, while total income decreased from Rs 1,444.05 crore to Rs
1,376.76 crore. Sources said MTNL will not sell any surplus real estate.
“It is only looking at leasing out real estate and earning lease rental,”
they said. When contacted by ET, MTNL CMD RSP Sinha said: “As an
organisation, if any additional revenue can be generated from our assets,
then why not?
Yes, of course, we are taking steps in this direction to make use of our
land.” He declined to comment further.
According to industry sources, MTNL owns over 400 acres in the two metros
and NCR. However, no official figures are available in this regard.
In 2001, the Comptroller and Auditor General (CAG) in its report said:
“Even during verification of land and buildings at Delhi unit, it (MTNL)
could produce to audit records of Rs 29.5 crore only as against fixed
assets of Rs 284 crore.” It added that land and buildings of Rs 233 crore
being capitalised by the telecom company are pending registration or legal
vesting in the name of MTNL.
According to the latest balance sheet of MTNL, the value of its freehold
land is Rs 18.9 crore, while that of leasehold land is Rs 190.95 crore.
However, details were not available.
A statement by Mr Sinha in April 2006 that MTNL was looking at setting up
a subsidiary for real estate had sent its stock price zooming. It was
later followed by an MTNL clarification on the Bombay Stock Exchange,
saying the proposal was at a very initial stage and the “separate entity”
could be just a group within MTNL.
by http://economictimes.indiatimes.com
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