Union Cabinet likely to decide on surplus VSNL land tomorrow

NEW DELHI: The Union Cabinet is likely to take a decision on the issue of surplus VSNL land pending since 2002 when Tata Communications acquired the PSU.

"Cabinet may decide on demerger of surplus land of VSNL ... on Thursday," sources said.

The transaction is proposed to be carried out through Hemisphere Properties (HPIL), an SPV formed through a cabinet decision in 2005.

The issue of surplus land has been pending since 2002 when Tata Communications acquired the PSU. The government's divestment however did not include 773.13 acres of land assets owned by VSNL.

Following Tata's acquisition, the surplus land was lying unused.

The Telecom Commission, which is the inter-ministerial panel under telecom ministry, in August 2011 recommended that government should acquire around 51 per cent stake in the SPV and DoT had to seek cabinet nod for buying this stake.

The Commission has also asked DoT to provide Rs 2 crore loan to HPIL for appointing a consultant that has to work out a roadmap for completing the process.