Date:12/01/2007 URL: http://www.thehindubusinessline.com/2007/01/12/stories/2007011204811000.htm

Offloading of Govt stake in VSNL, PPL referred to GOM

Our Bureau

Residual stake sale in VSNL, others

New Delhi, Jan 11

The Union Cabinet has referred the issue regarding the offloading of remaining stake of Government in VSNL, PPL, and Jessop and Company to a Group of Ministers. This was told to reporters by the Union Finance Minister, Mr P. Chidambaram, here on Thursday. The Department of Disinvestment had sought a legal opinion on the survivability of the call option provision of shareholders agreements entered into at the time of strategic sale of Central public sector enterprises during 2000-03, namely Videsh Sanchar Nigam Ltd (VSNL), Paradip Phosphates Ltd (PPL), and Jessop and Company.

The issue arose after Sterlite Industries wanted the balance share of Balco as per the shareholder's agreement whereas the Auditor General opined that the Government could not be forced to offload its stake. Consequently, some public sector companies approached the Government on the final position of the Government on the issue.