Cabinet approves demerger of surplus land of VSNL
New Delhi: The government Thursday approved the demerger of surplus VSNL land into a separate company, an issue that has been pending decision since Tata Communications acquired the PSU in 2002.
The land is estimated to fetch Rs 6,150 crore to the exchequer.
"Demerger of surplus land of VSNL has been approved," sources said.
DoT has proposed the government's taking 51.12 percent stake in Hemisphere Properties Ltd (HPIL), a Special Purpose Vehicle formed through a Cabinet decision in 2005.
The demerger of 773.13 acres, spread over at least five locations including Delhi, Chennai and Pune, was proposed to be carried out through HPIL.
The issue of surplus land has been pending since Tata Communications acquired the PSU, as the land assets owned by VSNL were not part of the deal.
Following the acquisition, the surplus land has been lying unused.
The Telecom Commission, which is the inter-ministerial panel under the Telecom ministry, in August 2011 recommended that the government should acquire around 51 percent stake in the SPV. The Department of Telecom had to seek cabinet nod for buying this stake.
The Commission has also asked DoT to provide Rs 2 crore loan to HPIL for appointing a consultant that has to work out a roadmap for completing the process.