Business   

No disinvestment proposal in BSNL, MTNL

By Our Special Correspondent

NEW DELHI DEC. 13. The Communications and IT Minister, Pramod Mahajan, today ruled out the disinvestment of the two state-owned telecom service companies in the near future. "I am sure there is no proposal of disinvestment of Mahanagar Telephone Nigam Ltd. (MTNL) and Bharat Sanchar Nigam Ltd. (BSNL) in the near future. If you ask me what is the near future, it is 2004,'' he said while interacting with newspersons.

The Government would not be able to sell BSNL because of procedural complications while MTNL was a "largely disinvested'' company.

Moreover, the Government had enough on its disinvestment plate to add more companies to the list, added the Minister. "Let the Government first complete disinvestment of those companies that are on the chopping block.'' BSNL was not even a listed entity and the move towards its corporatisation was yet to be completed. "How do you disinvest a company which is not even listed? When you think of disinvestment, you will have to go for listing to know the share price.'' Another objection related to its size. "If you look at the strength of BSNL when it will be listed, it would be enormous. Who will purchase this.''

MTNL was discounted to the extent of 46 per cent and Mr. Mahajan did not appear to be in favour of any further sale of its equity. "I hardly hold about 54 per cent share,'' he said. Asked if disinvestment was possible after the merger of the two companies, the Minister said even this proposal was likely to be time consuming.

A panel had already been set up to consider the issues that would be thrown up.

Printer friendly page  
Send this article to Friends by E-Mail

Business

News: Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Obituary |

Stories in this Section

• PM's concern over slow economic progress
• Revival in industrial growth will continue in H2 — CII
• Jaswant for modern, efficient tax system
• Rally in HPCL, RIL, Telco lifts Sensex
• Rupee ends higher against $
• Progress on the disinvestment front
• SC permits ICICI Bank to take over Mardia plant
• No disinvestment proposal in BSNL, MTNL
• Reliance Infocomm's aggressive marketing plan
• Autopartsasia floats EoU
• Mastershare to become open-ended
• Sharp rise in gold prices
• Stock Market Index
• Exchange rates
• Bullion rates

Copyright © 2002, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu