New Delhi: The government said on June 6 that it would prefer to resolve the contentious issue of Videsh Sanchar Nigam Limited’s (VSNL) Rs 1,200 crore investment in Tata Teleservices through discussions and would explore legal options only if the talks failed.

Communication Minister Pramod Mahajan, who along with Disinvestment Minister Arun Shourie met Home Minister L K Advani on June 6, told reporters, "We have requested Tatas to review the decision. We are talking to them."

Stressing that as holder of 26 per cent equity in VSNL, where Tatas recently acquired management control, government had a right to talk to the corporate house, Mahajan said legal opinion would be sought only after talks failed.

Both Mahajan and Shourie, who had met Advani on June 5 also amidst reports of rift between them, said that there were no differences between them on the process of disinvestment.

While Shourie said that Mahajan was very supportive of the disinvestment process and that his ministry had no role in the VSNL issue, Mahajan said, "We have no differences."

Asked about yet another decision by VSNL board to divest its stake in satellite communication companies INTELSAT and INMARSAT, Mahajan said that government would not interfere in small decisions by Tatas.

The issue of investment in Tata Teleservices was taken up by the government only because a large sum of Rs 1200 crore was involved.

PTI