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G. Rambabu

NEW DELHI, Sept. 17

AFTER its post-disinvestment squabbles with the Department of Telecommunications (DoT), international long-distance operator Videsh Sanchar Nigam Ltd (VSNL) is caught in a minor flap with the Ministry of External Affairs (MEA).

The company which had signed an agreement with MEA for operating a high-frequency radio communications (HFRC) network linking all the Indian missions abroad is yet to receive payments for its services over the past two years. Despite reminders, MEA has not paid the money (amounting to Rs 50 lakh) and has instead approached DoT seeking a clarification whether in the post-disinvestment scenario the outstanding dues have to be indeed cleared.

While VSNL, now controlled by the Tata group, insists that the outstanding dues are legally recoverable by it, MEA begs to differ. The agreement for the HFRC network was signed with VSNL in October 1995, when it was a Government company. It was between two Government units, but since VSNL has now been privatised, the dues cannot not be recovered by the new management, it noted.

DoT has clarified that after disinvestment, only the shareholding pattern of VSNL has changed. The bills raised by it before disinvestment would have to be paid even now. However, it has sought legal advice to be on the safer side.

While the controversy may have been reopened at the wrong time when VSNL is not seeing eye to eye with DoT on many issues, MEA is hopeful that it will not have to pay up the dues.

According to sources, the history of the case dates back to October 1995, when both sides reached an agreement for the communications network. It was agreed that VSNL would be paid annual maintenance and service charges for the network. The company also provided 29 staff members to operate and maintain the network.

Subsequently, on the recommendations of an expert committee constituted on the advice of the Public Accounts Committee of Parliament, MEA closed down the HFRC network in end-2000 since the technology had become redundant. Although the radio communications network ceased to be operational, the equipment was kept in `power on' condition in order to prevent deterioration. The staff strength was reduced proportionately till the power was finally switched off in August 2001.

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