New Delhi, June 6
In an apparent volte-face of sorts, Communication Minister Pramod Mahajan today indicated his readiness to rescind from his earlier rigid stand on the VSNL’s decision to invest Rs 1,200 crore in the Tata Teleservices.
Mr Mahajan’s climbdown came after Union Home Minister L.K. Advani personally intervened to prevent a potential showdown between Mr Mahajan and Disinvestment Minister Arun Shourie.
Mr Mahajan said today that the government would discuss the matter with the Tatas and would resort to legal recourse only in the eventuality of failure of talks. This is in contrast to Mr Mahajan’s earlier stand where the agitated minister minced no words in calling the decision of the VSNL Board as some sort of cheating.
Not only that Mr Mahajan had succeeded in roping the BJP to describe the Tata’s decision as unethical.
But Mr Shourie turned the table on Mr Mahajan when the former succeeded in making the BJP top shots, including Mr Advani veering round to his view.
Mr Advani’s intervention followed indirect accusations thrown at each other by the two ministers in public domain. There were even suggestions by some quarters that one of the ministers was toeing the line of a big industrial house, apparently a direct competitor of the Tatas.
The reconciliation followed hectic consultations by the Home Minister with Mr Shourie and Mr Mahajan, first individually and today jointly at his North Block Office.
Sources indicated that the outburst of one of the ministers could be premised upon an attempt to pre-empt a possible portfolio allocation in the Cabinet reshuffle expected shortly.
Reports have indicated that Mr Shourie was expected to replace Finance Minister Yashwant Sinha.
Emerging out of the meeting with the Home Minister along with Disinvestment Minister Arun Shourie, Mr Mahajan told mediapersons that he would meet the Tatas in the next few days to review the decision.
Both ministers rubbished the reports about a growing rift between them and also within the BJP over the process of disinvestment.
Mr Mahajan refused to comment on yet another contentious decision by the VSNL to divest equity in satellite communication companies INTELSAT and INMARSAT saying that “the government is not going to be concerned over every small decision taken by the VSNL.”
However, the decision to invest in a Tata company involved a huge amount of Rs 1,200 crore and in such a situation the government should have been consulted, he said.
As a 26 per cent equity holder in the VSNL, where the Tatas acquired management control and had 45 per cent stake now, the government had a right to talk to the company on investment decisions, he added.
Asked if the government was contemplating legal measures, Mr Mahajan said it was premature to talk about these now in view of the ongoing discussions.
On the position taken by the VSNL that investment decision was unanimous, despite government’s claim of disagreement at the board, Mr Mahajan said the issue was being discussed.
Mr Mahajan’s statement comes within 48 hours of the VSNL’s communication to the Department of Telecom justifying the investment decision, though the Managing Director, Mr
S. K. Gupta, said the board committee on inter-corporate investment would look into any additional investment opportunities that were perceived as attractive by government.
The stance taken by the two principal shareholders has for the first time given hopes of amicable settlement of the contentious investment decision that had led to speculation and doubt about the future of disinvestment at a time when the Planning Commission is seeking mobilisation of Rs 78,000 crore from this head during the Tenth Plan period (2002-07).
Mr Shourie told mediapersons that there was no one in disagreement with the disinvestment process and in fact “Mr Mahajan was one of the strongest supporters. He in fact steered the whole process of the VSNL disinvestment.”
He denied the reports that he had also approached Prime Minister Atal Behari Vajpayee on the issue saying that “we have already met Mr Advani.”
