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| Govt to examine proposals to hive off VSNL surplus land |
| Press Trust of India / New Delhi Aug 13, 2009, 21:35 IST |
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The government will consider a proposal to hive off 773 acres of surplus land of VSNL (now Tata Communications) into a separate company in a crucial meeting on August 26, which if agreed upon will give the exchequer a chance to monetise the real estate.
"We will consider demerger or hiving off surplus land of VSNL into a resulting company as also two other alternative proposals on the Full Telecom Commission meeting on August 26," a senior official of the Department of Telecom said.
Tata Communications when contacted said it would not like to comment on the matter.
Earlier, Tata Communications Chairman Subodh Bhargava had said, "There are indications that the issues related to surplus land will be resolved, paving way, sooner than later, for the company to raise non-debt funding for its projects."
The seven-year old dispute has remained unresolved since 2002 when the government decided to keep out 773 acres of surplus land owned by the company in four metros out of the sale deal entered into with the Tata Group while divesting its equity stake in VSNL in 2002.
If the decision is approved by the Commission, which is a inter-ministerial policy making body of DoT, on hiving-off the surplus land into a stand-alone company, it would clear hurdles for disposal of the land which has been long stuck.
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