Min to seek Cabinet nod for demerging VSNL
The Communications Ministry is expected to approach the Union Cabinet this month for approval to form a separate company to administer 773 acres surplus land lying with VSNL, which was privatised in 2002.
The recommendation to float a new entity after demerging VSNL was made by the Telecom Commission at its meeting held last month, sources said.
They said the government would hold majority 51.02 per cent stake in the demerged entity.
Sources said the value of the undeveloped land lying with the company is to the tune of Rs 2000 crore, while the book value is lot less.
They said the Telecom Commission has also proposed waiving capital gains and other taxes that VSNL might incur in the event of demerger of the land.
The government, while selling its stake in VSNL to Tatas in 2002, had decided to hive off the 773 acres land into a separate company.
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