The Tata Group today signed the shareholders’ agreement with the Government of India for the acquisition of a 25 per cent stake in Videsh Sanchar Nigam Limited. Pramod Mahajan, union minister for communications, information technology, and parliamentary affairs, graced the function, organised at the Taj Mahal hotel in Mumbai. Also present on the occasion were Ratan Tata, the chairman of Tata Sons, and S. K. Gupta, the managing director, VSNL.

Speaking at the signing ceremony, Mr Mahajan said, "It is a matter of great pride for our government to have successfully taken the disinvestment process forward. It proves the grit and determination of our government to transform India into a vibrant and progressive state. I am happy that the Tatas have successfully bid for VSNL. I am sure they will take the company from strength to strength."

Said Mr Tata: "We have great respect for all that VSNL has achieved through its dedicated and extremely competent workforce. The people and capabilities resident in VSNL will be a critical component of the Tata Group’s telecom strategy, and the partnership between our organisations will help us provide end-to-end, world-class telecom services to the Indian public."

Commenting on the way forward for VSNL, Mr Gupta said, "I am confident that the Tata-VSNL combine will be able to leverage their respective strengths and evolve an effective and aggressive business strategy. This, I am sure, will benefit both shareholders and the public at large."

VSNL, listed on Indian stock exchanges and the New York Stock Exchange, had a turnover of Rs 7,966 crore in financial year 2001. It has a workforce of around 3,000 employees. The company has, over the years, built a strong position in international long distance, Internet and other value-added services. It also possesses a national long distance license.