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Govt to sell MTNL, BSNL, but timing not decided: Mahajan

Buoyed by the success of the privatisation of Videsh Sanchar Nigam Limited, the government on Wednesday said it would divest its stake in Mahanagar Telephone and Bharat Sanchar Nigam Limited through competitive bidding route.

Asked by when the government would put the two corporations on the block, Communication Minister Pramod Mahajan said, "no time table has been set for BSNL and MTNL."

Mahajan told reporters after the signing of the agreement for transfer of 25 per cent government equity in VSNL to the Tatas for Rs 14.39 billion, that the Tatas would not be excluded from bidding for BSNL and MTNL.

"Hum Tatas ko swyamvar (bids) se bahar nahin rakhenge. Woh BSNL aur MTNL main hissa ley sakte hain. (We will not keep the Tatas out from bidding for BSNL and MTNL)" Mahajan said adding, "Jo jyada dowry (offer) dega hum use choonenge. (The highest bidder would be selected as partner for the two telecom PSUs)."

This is the first time, the government has indicated that BSNL, carved out of the Department of Telecom last year, could be privatised, even as market analysts pointed out that it would be a gigantic task going by the huge worth of the corporation at over Rs 650 billion.

When contacted, divestment secretary Pradeep Baijal said, "we will start discussion with the communication ministry. The minister has just made a statement but no time frame has been set."

He, however, said the Tata's could be allowed only in accordance with the guidelines set by the Telecom Regulatory Authority of India.

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