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'No plans to divest MTNL, BSNL'

The government on Wednesday clarified that it had no specific proposals to divest its stakes in Mahanagar Telephone Nigam and Bharat Sanchar Nigam.

"There are no specific talks about divesting MTNL and BSNL," telecom secretary Shyamal Ghosh said in New Delhi on Wednesday.

The government holds a majority 56.25 per cent in MTNL while another 40.87 per cent is held by banks and financial institutions (including 70 million shares held via GDRs).

BSNL, which provides both basic and cellular services across the country, will complete its first full financial year on March 31 this year. It was corporatised in October 2000, and the government holds 100 per cent of its equity.

However, last week Communication Minister Pramod Majhajan said that the government would divest its stake in both these companies through competitive bidding route, but added "no time table has been set."

Mahajan further 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.

At that time Mahajan had said that the highest bidder would be selected as partner for the two telecom PSUs.

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