NEW DELHI: The telecom ministry, headed by A Raja, has approved a proposal for 10% stake sale in Bharat Sanchar Nigam (BSNL).

The government will be able to raise over Rs 10,000 crore via the divestment thereby valuing BSNL at Rs 1 lakh crore. BSNL has assets worth of Rs 88,000 crore and a turnover of Rs 35,000 crore.

BSNL's unions and executive associations are opposing the disinvestment proposal.
Trade union representatives allege that post-listing, the situation of MTNL has turned from bad to worse, and the name of VSNL has been changed...

Employee unions are trying to negotiate for better pay, allowances and promotions...

According to sources in the ministry of finance, IOC is not on the disinvestment radar.

The proposal for the follow-on public offer of Steel Authority of India (SAIL) has already gone to the cabinet, and a decision is expected over the next 10 days.

The FPO, which is likely in August, will see government divest 5% stake and the company will issue 5% fresh equity.

The government is also likely to divest 10% stake in Engineers India (EIL) in May-June.

The divestment of stakes in Coal India and MMTC is likely to be finalised in the third quarter of the next fiscal.

Budget 2010 has set a divestment target of Rs 40,000 crore for the next fiscal.

V A N Namboodiri, general secretary, BSNL Employee Union, said the employees are opposed to the move....

Citing the examples of VSNL and MTNL, Namboodiri said the government has no need to divest stake, which is the first step of selling the company.