New Delhi: In a bid to resolve the raging controversy over VSNL's decision to invest
Rs 1200 crore in Tata Teleservices, government would soon talk with Tatas on the
contentious issue, with Communication Minister Pramod Mahajan saying legal options
would be the last resort.
After meeting Home Minister L K Advani along with Disinvestment Minister Arun
Shourie, Mahajan told reporters on June 6 that he would meet Tatas in the next few
days to review the decision that had triggered reports of rift within the government
and criticism from ruling BJP.
Both Mahajan and Shourie said there were no differences in the government and BJP
over the process of disinvestment.
Mahajan also refused to comment on yet another contentious decision by VSNL to
divest equity in satellite communication companies INTELSAT and INMARSAT
saying "government is not going to be concerned over every small decision taken by
VSNL".
However, the decision to invest in a Tata company involved a huge amount of Rs 1,200
crore and in such a situation government should have been consulted, he said.
As a 26 per cent equity holder in VSNL, where Tatas acquired management control and
have 45 per cent stake now, government had a right to talk to the company on
investment decisions, he added.
Asked if government was contemplating legal measures, Mahajan said it was premature
to talk about these now, in view of the ongoing discussions.
PTI