VSNL’s 773 Acres to Land in Hemi­sphere, Govt mulls 26% Stake Sale in Tata Comm

Land as­sets worth .₹ 10,000-15,000 crore will be hived off into a sep­a­rate co and sold

The Economic Times - - Front Page -

Govt and Tatas close to set­tling on sur­plus land

to be filed with NCLT shortly and send later to Cab­i­net for ap­proval Gul­veen Aulakh & Dev­ina Sen­gupta

New Delhi | Mum­bai : The gov­ern­ment and Tata Com­mu­ni­ca­tions are close to set­tling a 15-yearold real es­tate dis­pute through a deal that will see around 773 acres of land worth .₹ 10,000-15,000 crore hived off into a sep­a­rate com­pany and sold. The gov­ern­ment may also, over time, sell its 26% stake in Tata Com­mu­ni­ca­tions, ear­lier known as Videsh San­char Nigam Ltd (VSNL), af­ter the deal. The move is set to give the In­ter­net and fi­bre­pro­vid­ing arm of the Tata Group more flex­i­bil­ity in its op­er­a­tions, es­pe­cially by be­ing able to raise eq­uity — which it hasn’t been able to due to the gov­ern­ment hold­ing — and im­prove its debt-eq­uity ra­tio. Two se­nior tele­com depart­ment of­fi­cials said that talks are in their fi­nal stages. Once com­pleted, the scheme of ar­range­ment will be filed with the Na­tional Com­pany Law Tri­bunal (NCLT) and then sent for ap­proval to cab­i­net.

“We’re work­ing on the fi­nal stages. We want to fin­ish the process as quickly as we can, af­ter which it will go to NCLT, which will again take about three to four months,” one of the of­fi­cials said.

“The sur­plus land de­merger is a pri­or­ity and all the stake­hold­ers in­volved are work­ing in earnest to­wards the fi­nal­i­sa­tion of the same,” said a Tata Com­mu­ni­ca­tions spokesper­son. The gov­ern­ment and Tata will trans­fer the land as­sets af­ter the de­merger to Hemi­sphere Prop­er­ties (HPIL), in which the gov­ern­ment holds a 51% share, the sec­ond of­fi­cial said.

Both par­ties have been seek­ing to work out a deal over the past year and want to com­plete it by March 2018, said the peo­ple cited above. Land de­mar­ca­tions have con­cluded at three lo­ca­tions in Delhi, Kolkata and Chennai and are near­ing com­ple­tion at two in Delhi and Pune, the sec­ond of­fi­cial said.

15-yr old dis­pute Scheme of ar­range­ment

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.