No decision on BSNL IPO without union's consent: Raja

The government today said it is up to the Bharat Sanchar Nigam (BSNL) board to take any decision on initial public offering of the PSU but made it clear that employee Unions' consent is a must before going ahead with the public issue.

"Any decision on listing will be decided by the board of BSNL. But whatever decisions will be taken, it will be in consultation with the trade unions," Telecom Minister A Raja today said on the sidelines of a function.

The state-owned telecom company had approached the government last year with a proposal to divest 10 per cent stake to the public in a bid to raise about Rs 50,000 crore. The company was hoping to use the funds for its expansion.

According to sources, the government is now considering listing telecom major BSNL on bourses by issuing nominal fresh shares and may shelve plans of directly divesting its equity for the time being fearing opposition by employee unions.

Repeated attempts by the government and also by the management have failed to bring different associations to consensus on divesting government's stake even as they (employees) have been lured with Esops at attractive terms.

"We may first list BSNL on stock exchanges and then go for disinvestment," a senior government official had said earlier.

BSNL's valuation has been pegged at about Rs 5,00,000 crore and the PSU has a paid-up capital of about Rs 5,000 crore.