VSNL - Outcome Of Board Meeting

Videsh Sanchar Nigam Ltd (VSNL) has informed that, with reference to the earlier announcement dated February 17, 2007 whereby the Company had that the Empowered Sub-Committee at its meeting held on February 16, 2007, had approved the proposal to hive off the Companys Retail Business Undertakings (RBU) (comprising Broadband Services Undertakings and Retail Internet Services Undertakings) with all related assets anti liabilities on a going concern basis.The Board based on the recommendations of the empowered Sub-Committee decided that the hive off of the RBU with all related assets and liabilities may be done by way of a scheme of arrangement under the provisions of Sections 391 to 394 of the Companies Act of 1956 and that the proposed hive off of the RBU may be made effective March 01, 2007.