Centre may divest stake in TataCom

Delhi, May 7: The government is considering divesting its 26 per cent residual stake in Tata Communications Ltd (formerly VSNL), a deal that could fetch the exchequer about Rs 3,650 crore at current market prices.

The government holds 26.12 per cent stake in Tata Communications Ltd and going by the market price the value of the residual stake is a little over Rs 3,650 crore as the company shares are changing hands at Rs 491 a share.

The telecom commission headed by the telecom secretary, Mr Siddhartha Behura, will meet on Thursday to discuss divestment of the stake in the Tatas’ owned company, among other things on the agenda, an official in the department of telecom (DoT) said.

The meeting would also be attended by the finance secretary, Mr D. Subbarao, and secretary in the department of industrial policy and promotion (DIPP), besides other members of the telecom commission.

Tatas had an option last year than to buy the remaining stake it could not be done as the Centre could not resolve the contentious issue of surplus land with the company.

Tata Communications Ltd has 773 acres of prime land, which has been put in the surplus pool, and is valued at over Rs 1,000 crore.

According to the shareholders’ agreement between the government and the Tata group, post disinvestment, VSNL is to be demerged into two companies.

One would be the telecom company under the control of Tatas and the second a government-controlled company to administer the land. (PTI)