Department of telecom services secretary PS Saran told reporters that there were no immediate plans for disinvestment of the MTNL, indicating that the company would not offer equity in the current financial year.

According to Saran, ``The Government is yet to take a view on the disinvestment plan.'' He added that the new department of disinvestment headed by Arun Jaitley will take a decision on the issue soon.

Mahanagar Telephone Nigam Ltd (MTNL), it might be recalled, had earlier announced its plans to list on the New York Stock Exchange by February end and offer 19 million shares via the ADR route. The company, however, failed to receive timely nod from the Government for the proposed ADR issue which was expected to be executed within thisfiscal.

MTNL's other plan to offer existing GDR holders the option to convert into ADR's subsequent to the listing is also shelved for the time being, sources added.

Meanwhile, the Union Cabinet will consider initiatives for disinvestment of equity in Indian Airlines, Air-India and Mordern Foods at its meeting on Tuesday. The proposals to be cleared by the cabinet are aimed at helping the Government to fulfil the ambitious disinvestment target of Rs 10,000 crore in the current financial year. The Government has so far been able to mop up about Rs 1,500 crore.

With regard to Indian Airlines, the Government is considering to disinvestment 51 per cent of the equity in favour of financial institutions and public. As far as Air-India is concerned, the proposal include divestment of 26 per cent stake in favour of strategic partner, preferably foreign.

The Government, it might be recalled, had shelved the proposal of injecting Rs 1,000 crore in the Air-India to get a better price for equity. This move wasprompted by Government's inability to pump in the required funds into the Air-India.

As far as Modern Foods is concerned, it is more or less clear that the company will be sold to HLL. The proposal is to sell 74 per cent equity stake in Modern Foods to Hindustan Lever along with management control.