VSNL Land: DoT to give Rs 2 cr loan for consulting firm to SPV

NEW DELHI: The Telecom Commission has asked DoT to provide Rs 2 crore loan to Hemisphere Properties, a special purpose vehicle, for appointing a consultant to deal with the issue of the surplus land with VSNL, now Tata Communications.

"Subsequent to the acquisition of 51.12 per cent in HPIL, the Department of Telecommunications (DoT) would provide a loan of Rs 2 crore to HPIL, who would appoint a consulting firm having expertise in handling company law matters, legal, land revenue and taxation affairs," Telecom Commission is understood to have said in its last meeting.

HPIL is SPV formed through a cabinet decision in 2005 to execute the transaction on surplus VSNL land.

Tatas had acquired the state-owned company in 2002. However, the deal did not include 773.13 acres of VSNL's land assets, lying unused post acquisition of the PSU.

In the last meet, Commission asked DoT to acquire 51.12 per cent in HPIL for which department requires cabinet nod. This proposal, as per a DoT official, has gone to the cabinet.

After the approval of cabinet, HPIL will appoint consulting firm to do due diligence regarding title, change of land use and all other preparatory steps needed for finalisation of the Scheme of Arrangement to enable hiving off the surplus land from Tata Communications to HPIL.