DoT seeks CCEA direction on Bharti Hexacom stake sale
Press Trust of India / New Delhi Jul 14, 2009, 19:45 IST
The Department of Telecom is preparing a Cabinet note to seek directions whether it should sell its 30 per cent stake held through TCIL in Bharti Hexacom, considering the fact that it is getting no dividend from the joint venture.
"The CCEA will decide whether we should exit Hexacom or not. We are preparing a note for the CCEA. The main reason for looking such a direction is we are not getting any dividend from our stake," said a senior DoT official.
Sunil Mittal-run Bharti Airtel, the largest mobile operator in the country, holds the remaining 70 per cent.
Telecom companies are not generally paying any dividend; rather they are reinvesting in expansion and technology, the official said.
But the DoT appears to be in favour of selling its stake as the official said in JVs with private firms, "one is neither here nor there". It does not work well in partnership with the private sector in such cases, though this has been a long one.
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