In a virtual volte-face the communication ministry has opposed privatisation of Videsh Sanchar Nigam (VSNL) by bringing in a strategic partner on the grounds of 'security risk' even as disinvestment ministry dismissed apprehensions after talking to security agencies. Communication ministry wrote to disinvestment ministry on December 22 suggesting divestment of only four per cent equity in VSNL to bring down government holding to 49 per cent which in effect would take the corporation out of the purview of parlimentary and other statutory controls, sources said.
Following the letter, disinvestment ministry cancelled the meeting of the Cabinet Committee on Disinvestment (CCD) on December 23, even though agenda papers relating to VSNL privatisation were circulated only the previous night.

Officials of either ministry were not available for comments on privatisation of VSNL, whose share value had nosedived to Rs 198 from the year's peak of about Rs 1100 after the bonus issue. Prior to bonus the scrip had crossed the Rs 3,000 mark on the bourses.
CCD agenda was circulated after a broad understanding was reached between Communication Minister Ram Vilas Paswan and Disinvestment Minister Arun Shourie that government equity in VSNL would be brought down from about 53 per cent to 26 per cent, sources said.
Bureau Report