The Hindu Business Line : Ratan Tata steps down as VSNL chairman

Mr 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, Mr Tata proposed Mr Bhargava's name and the board accepted it. Mr Bhargava's tenure on VSNL's board had started as a government-nominated independent director on December 15, 1998, prior to disinvestment.

"Mr Tata cited the Tata Group'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 Group's strategies and activities in the telecom space," the statement said.

Mr Bhargava is currently associated with several boards as an independent director and is Chairman of Wartsila India Ltd, it 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 Rs 10,000 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 Mr Tata was Chairman.

When contacted, Mr Kishore Chauker, Managing Director, Tata Industries, said it was under Mr Tata's chairmanship that VSNL actually made the transition to a business model suited for its future.

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