New Delhi: The 13-day row between the government and Tatas over the recently privatised Videsh Sanchar Nigam Limited's (VSNL) decision to invest Rs 1,200 crore in Tata Teleservices seems to have ended with Tatas agreeing to induct Yashwant Bhave, government nominee, in the sub- committee on intercorporate investments and enlarge its scope.

After rounds of hectic discussions between the two, both the parties are believed to have reached an understanding whereby the sub-committee would decide the quantum and validation or price at which investment would be made by VSNL in Tata Teleservices at various points of time.

According to sources, in a letter written to D P S Seth, member (services), Telecom Commission, VSNL managing director S K Gupta has said that they agree and will proceed to circulate the resolution as per the suggestions made by the government.

As a result of the understanding between the two sides, the scope and extent of the committee has been enlarged to address the suggestions of Communications Minister Pramod Mahajan and it would now include identification and quantification of any additional investment opportunities, which were more attractive and submit the same to the board for its consideration.

The sub-committee is expected to complete its deliberations by August 15.

VSNL board on May 28 had decided to invest Rs 1,200 crore from its reserves in Tata Teleservices, a decision which met with stiff resistance from Mahajan.

PTI