Dod For Mtnl, Vsnl Privatisation

Privatisation and transfer of management control in Mahanagar Telephone Nigam (MTNL) and Videsh Sanchar Nigam (VSNL) to strategic partners for preventing the two telecom PSUs from turning sick has been recommended by the disinvestment ministry.

Official sources said that Department of Disinvestment (DoD) has suggested sale of 15 to 20 per cent of government equity in the two corporations to strategic partner which should also be given the management control in the two telecom giants.

A proposal by DoD, prepared for consideration of the Cabinet Committee on Disinvestment (CCD) is believed to have warned that any delay in privatisation of the two entities would turn them sick as these in the present structure were not capable of competing in the fast liberalising telecom sector.

 

Recommending privatisation of the two giants, DoD has sent a proposal for consideration of CCD, whose scheduled meeting today was postponed due to unavailability of communication minister Ram Vilas Paswan.

Communication ministry on the other hand is believed to be stiffly resisting the privatisation move on the ground that it would lead to unprecedented opposition from trade unions and employees.

Sources said that Paswan was, in fact, requested to postpone his Europe visit to take part in the CCD meeting which was put off for lack of substantial agenda.

Sources in Prime Minister