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The Department of Telecommunications (DoT) is set to hire a consultant to suggest what could be done with the surplus land of 773.13 acre that the Government is left with after the disinvestment of Videsh Sanchar Nigam Ltd (VSNL), currently Tata Communications.
The DoT will seek applications from prospective bidders on this soon.
According to a recent communication, the land is with Hemisphere Properties India Ltd (HPIL), in which the Government has a 51.12% stake. The consultant will analise options for demerger and hiving off surplus land into HPIL, following the terms and conditions of the share holding agreement.
In 2002, the government roped in the Tatas as the strategic investor and handed over control of VSNL by divesting 25% of its shareholding (which was at 51.12%). However, before the start of the bidding, 773.13 acres of land of the total 1,230.13 acre was demarcated as surplus land in which the successful bidder would have no interest. This land, it was decided, would be demerged or hived off into a new company.
