VSNL demerger: Firm writes to Sibal, puts blame on govt

Tata Communications (formerly Videsh Sanchar Nigam Ltd (VSNL) on Thursday wrote a letter to the communications and IT minister Kapil Sibal putting onus on the government for delay in demerger of surplus land into separate company.

Tata Communications (formerly Videsh Sanchar Nigam Ltd (VSNL) on Thursday wrote a letter to the communications and IT minister Kapil Sibal putting onus on the government for delay in demerger of surplus land into separate company.

HT Image

Tata Communication’s letter comes in response to Sibal ordering and enquiring on the issue of demerger of land.

The letter written by Subodh Bhargava, chairman of Tata Communications, gives sequence of events from 2005 and says that the government could not take decision on the scheme of demerger proposed by the “Strategic Investor” (ie, Tata group).

“The company has participated in a few discussions and received some correspondence on surplus land subsequently, but those have been mostly in the nature of seeking clarifications,” said Bhargava in the letter.

“You (Sibal) would agree that the demerger of this surplus land is waiting for the government's response on the matter. You should also recognise that the Board of Tata Communications has two directors nominated by the government and they are apprised of all these issues," said Bhargave.