New Delhi : The high-powered Telecom Commission is opposed to any strategicsale of stake in the public sector telecom giants Mahanagar Telephone Nigam(MTNL) and Videsh Sanchar Nigam (VSNL) as these are profit earning firmswith good prospects in the long term. The Commission in its recent meetinghas formed the view that any divestment in these companies and the IndianTelecom Industries (ITI) are not well intended, official sources told eFE onWednesday. The Commission is trying its best to convince the Department ofDisinvesment and the Committee of Secertaries on Disinvestment that thestrategic sale of equity in these telecom companies are not good. "We wouldtry our best to tell them that it is not in the best interest of telecomindustry", a Commission member said. Cabinet Committee on Disinvestment(CCD) is scheduled to meet on November 18 to take up many pending cases ofdisinvestment including MTNL and VSNL.Apparently, the Communications Minister, Mr Ram Vilas Paswan, is taking adifferent stand on the issue making it difficult for the Telecom Commissionto prevail upon the disinvestment department. The Minister of State forCommunications, Mr Tapan Sikdar had said on Tuesday that there weredifferences of opinion on disinvestment of these companies. TelecomCommission has taken the view against bringing a strategic partner as thesecompanies did not require a partner either for technological or financialassistance. "Technologically, financially or for marketing reasons, we donot need a partner.
Besides, these are professionally-managed companies which are doing quitewell. Hence, just for the sake of having a strategic partner, there is nowisdom in offloading equity in these companies," Telecom Commission sourcessaid. However, the commission is amenable to bringing down the governmentstake to below 51 per cent level by offering it to the employees. "That willbe good for the company as the stake would be in proper hands", sourcesadded.
Offloading stake in the not so profitable Indian Telephone Industries (ITI)is, however, not desirable for different reasons. "ITI acts as acountercheck on the equipment industry mostly dominated by multinationalcompanies. This would keep the foreign manufacturers under check in terms ofprices and the delivery schedules," sources said. ITI has turned the cornerin the last two years and is expected to do better in the coming financialyear.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.