June 6, 2002 | 1445 IST
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Money > PTI > Report June 6, 2002 | 1445 IST |
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Mahajan to talk to Tatas over VSNL controversyIn a bid to resolve the raging controversy over VSNL's decision to invest Rs 12 billion in Tata Teleservices, the government would soon talk with the Tatas on the contentious issue, with Communication Minister Pramod Mahajan saying legal options would be the last resort. After meeting Home Minister L K Advani along with Divestment Minister Arun Shourie, Mahajan told reporters on Thursday that he would meet the Tatas in the next few days to review the decision that had triggered reports of rift within the government and criticism from ruling Bharatiya Janata Party. Both Mahajan and Shourie said there were no differences in the government and BJP over the process of divestment. Mahajan also refused to comment on yet another contentious decision by VSNL to divest equity in satellite communication companies INTELSAT and INMARSAT saying "government is not going to be concerned over every small decision taken by VSNL." However, the decision to invest in a Tata company involved a huge amount of Rs 12 billion and in such a situation government should have been consulted, he said. As a 26 per cent equity holder in VSNL, the government had the right to talk to the company on investment decisions, he added. Asked if the government was contemplating legal measures, Mahajan said it was premature to talk about these now in view of the ongoing discussions. On the position taken by VSNL that investment decision was unanimous despite government's claim of disagreement at the board, Mahajan said the issue was being discussed. Mahajan's statement comes within 48 hours of VSNL's communication to Department of Telecom justifying the investment decision, though managing director, S K Gupta, said that the board committee on inter-corporate investment would look into any additional investment opportunities that were perceived as attractive by government. The stance taken by the two principal shareholders has for the first time given hopes of amicable settlement of the contentious investment decision that had led to speculation and doubt about the future of divestment at a time when the Planning Commission is seeking mobilisation of Rs 780 billion from this head during the Tenth Plan period (2002-07). Shourie told reporters there was no one in disagreement with the divestment process and in fact "Mahajan was one of the strongest supporters. He in fact steered the whole process of VSNL divestment." He denied the reports that he had also approached Prime Minister Atal Bihari Vajpayee on the issue saying, "we have already met Advaniji." ALSO READ:
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