DoT to approach the Cabinet on Tata Communications’ surplus land issue

The Department of Telecommunications (DoT) plans to approach the Cabinet for its approval to proceed with the hiving off of Tata communications? (the erstwhile Videsh Sanchar Nigam Limited) (VSNL) 773 acres of surplus land.

Prior to this, the Telecom Commission had recommended that the Government acquire a majority stake in the special purpose vehicle (SPV) created to execute the sale of the surplus land.

It is believed that the Government will acquire a stake of a little over 51 per cent in the SPV.

In 2005, the Cabinet had approved setting up an SPV to execute the transaction related to the surplus land. Tata Communications had acquired VSNL in 2002, but the deal did not include 773.13 acres of land assets owned by VSNL, which have been lying unused following the acquisition.