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FinMin concerned over extent of VSNL loss

Officials of Videsh Sanchar Nigam were on Friday assessing the financial loss that might arise from the massive accounting scam of the US telecom giant WorldCom, industry sources said in Mumbai even as the Union finance ministry expressed concern over the prospect of a severe dent in the finances of India's international telephone carrier.

Sources said the finance ministry was making enquiries to comprehend the extent of damage VSNL could suffer in the event of WorldCom filing for bankruptcy if the management of VSNL's preferred carrier to the US, failed to tide over the crisis.

Telecom industry sources estimate the loss at Rs 6 billion.

This would be by way of settlement charges payable to VSNL for carrying traffic during April-June 2002.

VSNL on Thursday received a letter from WorldCom executive vice president assuring it of ''cordial and professional relationship''.

The WorldCom official said the company believes it will come out of its current crisis.

The Union government holds a 26 per cent stake in the Tata-controlled VSNL.

UNI

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