THE TATA Group is planning to bid for the government's stake in public sector long distance telecom operator Videsh Sanchar Nigam.

A consortium of the Tata companies will submit the bid jointly for VSNL in the first week of April, according to Kishore Chaukar, managing director, Tata Industries. The government intends to divest its 25 per cent stake in the company.

"We have not yet decided the companies within the Tata group that will form a part of the consortium. But there are some obvious choices like Tata Power and Tata Teleservices and we will finalise this by the end of this month," Chaukar said.a "Tata Sons can also bid directly for VSNL as it meets the Rs 2,500 crore networth requirement but we want the other Tata companies to participate. For instance, as Tata Power has an extensive fiber optic network in Mumbai its participation will certainly add value to the bid" Chaukar said.

"We are in the process of identifying the companies that will bid for VSNL as soon as it is complete we will submit our bid." This should happen by the first week of April," he said.

The number of players who have expressed interest in bidding for VSNL has been growing in the last few weeks. The last date for submitting the expression of interest in April 10.

France Telecom, Essar Group, Singapore Telecom, Reliance and Concert -- the joint venture between AT&T and British Telecom -- are some of the players likely to submit the bids.

The Tata Group seem to be serious about its bid and is planning to use this opportunity as its entry vehicle into the broadband services arena too.

"Once we have formed the company that will bid for VSNL, we might use it for our broadband foray also." The Tata Group is planning a countrywide fiber optic internet back bone.

The Tatas are also planning a consolidation of its new basic telecom licenses after they are awarded. Tata Teleservices has bid for licences in 15 circles and Tata- Birla -AT&T combine has bid for another seven circles.

According to Chaukar, "We have not yet received the license for any of the circles but we will discuss consolidation with our partners after we receive the licenses."