Panel for demerger of VSNL's land

The Telecom Commission has decided to demerge Tata-owned Videsh Sanchar Nigam Ltd's (VSNL's) 770-acre land, putting up a proposal for the Cabinet's approval.

The aim is to constitute a special purpose vehicle (SPV) that will hold the land now under VSNL management's control. The government would have a major stake in the SPV, sources said.

Tata Sons holds through various companies a 50.1 per cent stake in VSNL, while the government owns 26.12 per cent stake, with the rest distributed among financial institutions and individuals.

When VSNL was disinvested in by the National Democratic Alliance (NDA) government in 2002, the 770-acre land was not part of the disinvestment process. The government thus retained rights over the land.

When contacted, VSNL officials declined to comment.

The value of the land had been provisionally assessed at that time, but given the current valuation, the SPV, once formed, will be sitting on a few thousand crores by conservative estimates.

VSNL's real estate assets include prime offices in New Delhi and Mumbai and large parcels of land at locations like Chattarpur, Delhi, and Arvi, Pune.