Govt calls for EoI to sell surplus land of VSNL

In a bid to raise funds by selling surplus land of erstwhile Videsh Sanchar Nigam (VSNL), acquired by Tatas in 2002, the government has invited bids to hire consultants to ascertain value of land and initiate the process to sell it.

"At the time of disinvestment surplus land measuring 773.13 acres located at five sites was demarcated and was decided that the surplus land will not be a part of disinvestment bids and will be disposed off as per Share Holding Agreement (SHA) and Share Purchase Agreement (SPA)," the Telecom Ministry said in a notification.

Tata group company Panatone Finvest had acquired controlling stake in VSNL on February 13, 2002, for Rs 1,439 crore as part of the disinvestment programme of the then NDA government.

Besides, the Tatas had also made an open offer to acquire additional 20% stake from the market.

The government has asked for expression of interest to sell off the surplus land lying with the DoT on the five sites located -- Dighi-Pune, Halishahar- Kolkata, Chattarpur-New Delhi, Greater Kailash-New Delhi and Padianallur-Chennai.

For the disinvestment, the DoT intends to hire the services of a consultant for options available as per SHA/SPA for disposal of Surplus land, ownership and title of the land and whether encumbrances exist on the land allotted to the erstwhile Oversees Communications Services and VSNL and ascertain the Government's stake in the surplus land of VSNL as per SHA.

The interested parties have to make a payment of Rs 10,000 and the last date for submission of queries by the interested parties may be read as February 28, 2011 instead of February 21, 2011.

Though no time frame has been given by the government to complete the process, sources in the know said that it may not be done in the current financial year.