Mumbai: The divestment process in Videsh Sanchar Nigam Ltd (VSNL) may not get implemented by the end of calendar 2001, as the Central governments issuance of the guidelines on international telephony is still pending.

The Telephone Regulatory Authority of India (Trai) is yet to take a decision on the consultation paper issued by it earlier on the subject - another hurdle in the way of VSNL divestment.

Sources say at least two of the three bidders in VSNL - Reliance, the Tatas and BPL - have asked for a second round of due diligence in the company, which they say will begin in the very near future.

In the meantime, PricewaterhouseCoopers has been appointed by VSNL to value its assets, including about 1,000 acres of land lying in various parts of the country taken by it on lease, for creating infrastructure facilities.

VSNL sources feel the valuation of its assets is a prerequisite for divestment, as it would help it to fetch a decent price for its shares. The price at which its shares would be divested will also depend on investor perception.

VSNL sources say they expect steep cuts in international telephony charges after the same was opened to private players. This would hardly make any difference to VSNL, as volumes would rise substantially once the rates are brought down. If international call charges are to be brought down by about 50 per cent, volumes could rise by about 20 per cent.