BPL Comm exit not to affect VSNL bid

Vandana Gombar in New Delhi

The exit of BPL Communications from the consortium bidding for government’s stake in Videsh Sanchar Nigam Ltd (VSNL) does not mean the dissolution of the consortium or its bid.

“Our bid continues to be active. We still fulfill all the eligibility requirements,” authorised representative of the consortium who belongs to the Sterling group, V Srinivas, told The Financial Express. There is thus no need to look for a new partner, he said, adding that such changes were foreseen in the ‘Request for Proposals’ floated by the government.

BPL held a 26 per cent stake in the consortium, which is one of the three remaining bidders for the government’s 25 per stake in VSNL. Other members of the consortium are Sterling Infotech (26 per cent), Century Tel (24 per cent) and Tycom (24 per cent).

Sterling Infotech is likely to take BPL’s 26 per cent stake and become a 52 per cent stake-holder in the consortium. However, the exact equity-holding pattern between the three remaining partners is not clear yet. “This will be done in the next couple of weeks and the changes will be conveyed to the government,” Mr Srinivas said.

There were six original bidders for buying the government’s stake in VSNL—Bharti-Singtel, Videocon-Toshiba, Birlas, Tatas, Reliance and the BPL-Sterling consortium. The first three in the list had decided to exit from the race earlier.

Reports meanwhile said that BPL Communications, which is in the process of merging with Birla-AT&T-Tata combine may partner with the Tatas for a stake in VSNL, the country’s largest Internet Service Provider and also the monopoly provider of international telecom services.