The Hindu Business Line : VSNL advances investments in Tata TeleServices

VIDESH Sanchar Nigam Ltd would be investing Rs 370.4 crore in Tata TeleServices Ltd by June 30, bringing its equity stake in TTSL to 19.99 per cent, far in advance of the planned time for this, i.e. 2007-2008.

VSNL had already invested Rs 465.4 crore in TTSL, as of December 31, 2003.

VSNL is maximising its approved investment in TTSL this year itself, on account of the change in the various Government policies, in particular the unified access licence.

Under the earlier plan of 2002 — drawn up following differences between the government nominees and the then new Tata dispensation at VSNL over its proposed investments in TTSL — the agreement was to allow VSNL to invest up to 19.99 per cent in TTSL by 2007-2008.

"It was considered necessary from the perspective of business and competitive scenario that TTSL opted for the unified licence in all its existing circles. As a result of the drastic changes in the telecom licensing regime, the business plan and capitalisation schedule of TTSL has been revised," said VSNL in its notice to the stock exchanges on Tuesday.

A senior executive with VSNL claimed there was no opposition to its current decision from the Government nominees on the board of the company.