No decision yet on BSNL disinvestment

NEW DELHI, INDIA: The department of disinvestment has not reached any conclusion on the disinvestment of the government stake in BSNL; nor has it been able to identify or set benchmark on when it is going to call the market condition favorable for it.

“We are in discussion with the ministries concerned for disinvestment of public stake in 60 CPSUs, including BSNL. We will not be able to give you the exact position on the status of disinvestment, but it will be done when market condition is favorable,” said Sunil Mitra, secretary, disinvestment, Ministry of Finance while speaking here today on the recent policy guidelines approved by the cabinet for disinvestment in public sector units.

However, in another remark on the occasion Mitra accepted that the market condition is very good as has been reflected in the response to the IPOs issues by private sector companies.

In the last financial year, Indian telecom industry had seen breathtaking deals like Etisalat buying 45 per cent in Swan telecom, Telenor buying 60 per cent stake in Unitech Wireless and NTT Docomo acquiring 26 per cent in Tata Teleservices.

Also, 3G and BWA spectrum auction are scheduled to be held in the mid of January 2010 from which the government of India is expecting to raise Rs 35,000 crore. BSNL and MTNL had already been allotted 3G and BWA spectrum; only they have to match the price of final bid amount.

But, Mitra said that disinvestment of CPSU will happen when the market condition is favorable and disinvestment in BSNL cannot be linked to 3G auctions.

"I don't see any link between 3G auction and disinvestment of government stake in BSNL," said Mitra.