The board of state-run BSNL has proposed to sell 10 per cent of the government's 100 per cent stake in the company through an initial public offer.
A senior BSNL official said discussions are going on for a 10 per cent dilutions and the management is aware of the obstacles from the union.
The management would talk to them before taking any decision and send it to the department of telecom for approval, he added.
When contacted, Telecom Minister A Raja said, "The proposal has not come to me. I have not taken a decision." BSNL employees union in a statement has said they would meet on August 5 to decide on the future course of action.
"The contention that listing is necessary for expansion and the grant of navratna status, is not acceptable. Other PSUs including HAL has been granted navratna without listing. LIC which has over 78 per cent marketshare has not been listed," BSNL Employees Union General Secretary V A N Namboodiri said.
PSU sources said the old proposal of a $10 billion listing is back on the discussion table as the Government is more free now to go ahead with reforms after the Left withdrawl of support.
The BSNL management had earlier withdrawn the IPO plans following opposition from the union.
The company, which has nearly 70 million subscribers, is valued at around $100 billion. A 10 per cent dilution would fetch about $10 billion, making it the biggest IPO in India.
Faced with stagnating turnover and a possible marginal dip in profitability in the current financial year, BSNL may have to take the IPO route to fund future expansion plans.
