Amid reports that the government has started the process for appointment of a global consultant for selling up to 10 per cent equity in Bharat Sanchar Nigam Ltd, the Department of Telecom Tuesday said there was "no plan" to divest stake in the telecom giant.
"There is no plan to disinvest in BSNL," Telecom Secretary J S Sarma told reporters almost at the same time when BSNL Chairman and Managing Director A K Sinha said the corporation had submitted its views on disinvestment through an Initial Public Offer or otherwise.
"Three months back, the government had written to us asking whether we need to plan for an IPO. How do we prepare it, how do we go about it and whether in our view it is the right time and it is in our interest. We have responded," Sinha said on the sidelines of 'Convergence India' exhibition.
Unaware of what Sinha had said, Sarma told reporters at the same function: "There is no decision to disinvest in BSNL partially or otherwise. There appears to be some files relating to the views expressed by BSNL. I am looking into that file, but I am categorically saying there is no plan to disinvest in BSNL."
In a follow up to the BSNL response to government seeking its views on disinvestment along with an IPO, the Centre had asked for some additional inputs from the company.
"The government had demanded more inputs. We have given our view," Sinha said while declining to comment on the response the PSU has given.
"I am not government The final call has to be taken by the government, which owns 100 per cent stake in BSNL," he said.
When asked whether the PSU was talking to merchant bankers for an IPO, Sinha said "We are not talking to any merchant bankers. (But) I am in talks with people and a lot of people are in talks with us. Talks have not gone beyond that stage."
When asked about the valuation of BSNL currently when telecom stock are doing fine, Sinha said "at the time of transfer, the valuation was Rs 60,000-70,000 crore. BSNL was transferred from Department of Telecom in 2000.
According to the government policy, a minor percentage of equity can be sold in non-navratna profit-making PSUs.
India's divestnment development: Complete coverage
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group
