Govt initiates talks with DoT for BSNL stake sale

The government has started discussions with the Department of Telecommunications (DoT) for disinvestment in BSNL and Telecommunications Consultants India Ltd (TCIL) in the current fiscal.

A senior DoT official told PTI today that Finance Secretary Ashok Chawla had held a meeting with various ministries over disinvestment in certain companies and the issue of IPOs of TCIL and BSNL also came up for discussions.

It was decided that DoT, along with the Department of Disinvestment (DoD), would work first towards TCIL’s initial public offer. The BSNL IPO issue would also be taken up during the current fiscal keeping in mind its employees’ opposition to the issue. Last year, BSNL announced its plans to sell 10 per cent out of the government’s 100 per cent stake, but was forced to defer its listing after opposition from its employee unions, coupled with the meltdown of stock markets. The unlisted TCIL is also set to enter the capital market. The company’s turnover is estimated to be Rs 602 crore in 2008-09, with a networth of Rs 400 crore.

The finance ministry said a roadmap for divestment in PSUs will be brought out in three-four weeks, but there would be no strategic sale.