Search the Internet          Tips  Sites: Finance, Investment

'Tatas knew what they were getting into'

Thomas K Thomas in New Delhi

Pramod Mahajan on Friday said the suggestion by the Tatas that they got a raw deal by picking a stake in Videsh Sanchar Nigam Ltd was "unfair".

"If the Tatas are answerable to their shareholders, I am answerable to Parliament," he said.

Mahajan said when financial bids were invited for VSNL, the strategic partner was told about the government policies. "The Tatas' comments are not fair. I informed the strategic investors well in advance about our policy on international long-distance services and Internet telephony. I don't think the government has hidden anything."

Reacting to complaints that the compensation given to VSNL for advancing the date of ending its monopoly on international long-distance services was not enough, Mahajan said the compensation package was accepted by the previous VSNL management.

"The new management knew about the package before bidding for VSNL. If someone still ventures ahead and the situation changes at a later stage, nothing can be done."

On the vexed issue of interconnection between Bharat Sanchar Nigam Ltd and VSNL for carrying international long-distance calls, Mahajan said the shareholder agreement clearly permitted BSNL to transfer its ILD traffic to any of the competing ILD operators offering better rates.

"As long as VSNL was a public sector undertaking, there was an agreement between VSNL and BSNL. This ended after the privatisation. If somebody is giving BSNL a better interconnection rate, it has the right to take that offer."

Mahajan said VSNL had not given its proposal for improving interconnection terms even after six months.

"Data Access and Bharti have given me a proposal but VSNL is insisting that the old rates should apply. There is a vast difference between the old rates and what Bharti or Data Access has offered."

Powered by

ALSO READ:
The Divestment Development
More Money Headlines