The Department of Telecommunications (DoT) has asked the Union Cabinet for its approval to sell the erstwhile Videsh Sanchar Nigam Limited’s (now Tata Communications) surplus land.
The sale may provide the exchequer with Rs 61.5 billion. In this regard, a Cabinet note has been circulated for inputs from the various ministries.
Prior to this, the Telecom Commission had decided to acquire 51.12 per cent in Hemisphere Properties India Limited (HPIL), the company into which the 773 acres of surplus land will be transferred to. The company planned to appoint a consultant with expertise in handling company law, land revenue and tax-related matters.
In 2002, VSNL’s majority stake was acquired by the Tata Group. However, the 773 acres spread over five locations in Delhi, Kolkata, Chennai and Pune, was not part of the package.
Thereafter, DoT had proposed to hive off the surplus land held by VSNL into a separate company to unlock the value by selling it. However, the Tata Group raised a number of issues, including clarity on who would provide funding to create the new company.
