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Home -> Finance -> Full Story
Mahajan to talk to Tatas on VSNL issue
Thursday, June 6 2002 14:50 Hrs (IST)

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