DoD, Communication ministry agree on privatisaion of VSNL
PRESS TRUST OF INDIA

NEW DELHI, NOV 30: The two ministries have held several rounds of negotiations on privatisation of telecom utilities following which communication ministry agreed for the process with VSNL, sources said.

Discussions are still on between the two ministries on sale of government stake in Mahanagar Telephone Nigam (MTNL), sources said, adding that this would be probably taken up after a final decision was arrived at on VSNL.

As part of privatisation of VSNL, whose monopoly in international long distance communication (ISD) is slated to end by 2002, the government is likely to divest about 27 per cent stake to bring down its holding in the communication giant to 26 per cent, sources said.

Communication ministry had been seeking deferment of a decision on the sale of government equity either in MTNL or VSNL on various grounds including possible effects of privatising these entities on corporatisation of Department of Telecom Services, which has been converted into Bharat Sanchar Nigam from October 1.

Government deferred a meeting of Cabinet Committee on Disinvestment (CCD) on November 10 on the ground that disinvestment in telecom companies could not be taken up in the absence of Communication Minister Ram Vilas Paswan, who also did not attend the subsequent CCD meeting on November 18.

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