The proposal for the interim dividend on 9.5 crore equity shares of Rs 10 each was cleared at the company's board meeting held here on Friday. "During the fiscal 1998-99, VSNL increased the dividend to 80 per cent from 40 per cent paid in the previous fiscal. This year we have gone up one step ahead and are declaring an interim dividend for the first time," VSNL chairman and managing director SK Gupta said.

Meanwhile, the VSNL scrip touched the upper limit on the BSE on Friday, closing at Rs 2,085 against an opening of Rs 1,931. The intra-day high and low of the scrip was Rs 2,085 and Rs 1,855, respectively.

A press communique said that VSNL has formed several global alliances with prominent international carriers to provide seamless connectivity through satellite, sub-marine and micro-wave media.

VSNL, which is eyeing equity participation in several dotcom companies in India, is actively participating in various global optical fibre projects in order to garner a large chunk of the market share.