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Govt's stake in VSNL to come down to 26%

Briefing reporters after the CCD meeting, Shourie said 1.97% of the equity would be given to employees of VSNL, whose welfare, he said, is uppermost in the government's mind.

Shourie said VSNL would be allowed to explore new businesses in the telecom sector for which its board would be adequately empowered.

"The government has full confidence that VSNL's incomparable assets of Rs 40 billion will give it the muscle to venture into new areas," Shourie said.

In another major development, the CCD decided to reduce the government's equity in the Computer Maintenance Corporation from of 83% to 26%.

Shourie said the search for a strategic partner for CMC is on through competitive international bidding and the shareholding pattern in the company would be decided later in consultation with the partner.

He, however, added that the government's orders would continue to be applicable to divested companies in the telecom sector for a period of two years from the date of divestment.

Regarding Bharat Aluminium Company, Shourie said that three serious bidders were left in the fray. Seventy-four per cent of the government's equity in BALCO is to be divested.

Regarding his ministry's efforts to divest the government's stake in various public-sector undertakings, Shourie remarked: "Opportunities just cannot be passed by and this is uppermost in my ministry's mind."

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