Telecom stock, MTNL Shares Rise 20% as Government Approves Rs 16,000 Crore Asset Monetization
To unlock value, pay off debt, and boost the industry, Chawla reaffirmed the government's commitment to helping MTNL and BSNL monetize their assets.

Telecom stock, MTNL Shares Rise 20 as Government Approves Rs 16,000 Crore Asset Monetization
Mahanagar Telephone Nigam Ltd. (MTNL) shares jumped 20% to Rs 57.21 in morning trading on Wednesday, February 5, as a result of growing confidence in the company's FY26 asset monetization plans. This surge ended a two-day losing streak after a 7% gain the previous day. Arunish Chawla, Secretary of the Department of Disinvestment and Public Asset Management (DIPAM), made remarks at CNBC-TV18's Budget 2025 Verdict discussion that started the spike.
To unlock value, pay off debt, and boost the industry, Chawla reaffirmed the government's commitment to helping MTNL and BSNL monetize their assets.
“We are going to assist MTNL and BSNL in monetizing their assets so that the value locked in can be redeployed, liabilities cleared, and the sector re-energized," he stated. MTNL, which has been weighed down by significant debt, was categorized as a Non-Performing Asset (NPA) by most state-owned banks in October last year.
Additionally, Finance Minister Nirmala Sitharaman’s Union Budget 2025 speech introduced a new initiative aimed at providing broadband connectivity to select government schools and health centers.
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This positive news boosted the entire telecom sector, with the BSE Telecom index rising 1.4% to 2,806. The government’s earnings from the telecom sector primarily stem from license fees and spectrum usage charges (SUC), both of which are linked to telcos’ AGR.
Operators pay 8% of their AGR as license fees, while SUC, which had previously been around 3-4%, has now fallen below 1% after the removal of the 3% floor and the waiver on SUC for spectrum acquired post-July 2022.
Revenue from captive telecom networks is derived from fixed license fees and a nominal one-time entry fee. MTNL shares were trading at Rs 56.6 on the NSE, up 18.8% from the previous close. The stock has gained over 17% in the past three months.
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