Ratan Tata steps down as VSNL chairman
By Our Corporate Bureau | 12 Apr 2005
Mumbai: Ratan Tata has stepped down as the non-executive chairman of Videsh Sanchar Nigam Ltd (VSNL).
Subodh Bhargava, an independent director of the VSNL board and, until March 2000, chairman and CEO of the Eicher group, has been appointed the telecom company''s new non-executive chairman.
According to an official statement, Tata proposed Bhargava''s name and the board accepted it. Bhargava''s tenure on VSNL''s board had started as a government-nominated independent director on December 15, 1998, prior to disinvestment.
Tata cited the Tata goup''s expanding activities in India and overseas and his additional responsibilities, inter alia in connection with the Investment Commission, as reasons for his decision. However, he clarified that he would continue to be involved with the co-ordination and integration of the Tata Goup''s strategies and activities in the telecom space," the statement said.
The Tata Group''s presence in telecom is through VSNL, Tata Teleservices and Tata Internet Services. According to recent reports, the Tatas propose to invest an additional Rs10,000 crore in the telecom business. Some of this would likely be from VSNL. The Tatas own 46-47-per cent equity in VSNL. The company was the only telecom company from the Tata fold in which Tata was Chairman.
