The Hindu Business Line : VSNL employees seek allotment of 3 pc equity when Govt exits

THE Government may have to give an additional 3 per cent stake in Videsh Sanchar Nigam Ltd to the company employees before divesting the residual stake of 26 per cent.

According to the agreement struck with the VSNL employees federation at the time of divesting 25 per cent stake to the strategic investor, the government was supposed to give up to 5 per cent of the company shares as a relief package to the employees. While 1.97 per cent share was allotted to the employees in 2002, the balance was to be given at the time the government exits from the company completely.

Speaking to Business Line, Mr J.S. Dhaliwal, President, VSNL VRS Optees Welfare Association, said, "As per the agreement between us and the government we were given the assurance that the balance 3 per cent stake would be allotted to the employees when the government sells off its final stake in the company. Now that the government has initiated the process to sell off its residual stake, we have written to the Department of Telecom to fulfil the promises given to us in 2002."

The association has 1,500 former VSNL employees who had taken voluntary retirement scheme. The association has sought a discounted rate for the equity shares at one-third the average lowest price over the last six weeks. They have also suggested a lock-in period of 90 days.

The employees association has also written a letter to the DoT pointing out that when other `Navratna' public sector undertaking companies were disinvested employees were given a 10 per cent stake in the company, VSNL employees were given only 5 per cent. Senior DoT officials said that the issue had been referred to the VSNL board for necessary action.

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