The Telecom Commission plans to ask the Law Ministry for its views on the proposal to demerge surplus land held by Tata Communications (formerly VSNL) into a new company.
The panel, which has representatives from the Department of Economic Affairs and the Department of Industrial Promotion & Policy, has also decided to approach the Planning Commission for its comments.
The Department of Telecommunications (DoT) had proposed to hive off the surplus land held by VSNL into a separate company in order to unlock the value. In 2002, the Tata Group acquired a majority stake in VSNL. However, the 773 acres of land, spread over five locations in Delhi, Kolkata, Chennai and Pune, was not part of the deal.
As part of the agreement, the strategic partner (the Tata Group) was to facilitate the process. However, the process was stalled, as the Tata Group raised a number of issues. Thereafter, the government and the Tata Group have been unable to reach a consensus over how to dispose the land.
Recently, Kapil Sibal, Minister of Communications and IT, had asked DoT to enquire why the process was delayed. While DoT holds the Tata Group responsible, the latter has put the onus on the government.
The Telecom Commission, which met on July 5, could not decide how to resolve the dispute and has asked DoT for more information. The Commission has also sought details on ownership of the land before VSNL was established. It has also sought information on whether the government or Tata Communications can sell the land, taking into account the specific purpose for which the land was allocated.
The panel has asked DoT to explain the funding mechanism and the viability of the proposed new company into which the surplus land will be transferred.
