New Delhi: Even though the telecom service provider, Bharat Sanchar Nigam (BSNL) is already set for an IPO of $10 billion (the largest in India), the Employees Union of BSNL is vehemently opposing the plan. The Union has even opposed an Esop offer by Telecoms Minister Andimuthu Raja. Raj has asked the board of BSNL, which cleared the IPO proposal last week, to negotiate with the unions.

The IPO is planned with 500 shares being offered to its 304, 000 employees at Rs.10 a share. However, the initial offering would be in a range of Rs.300-400 per share, which can happen within six months. Moreover, with the Indian shares losing its value and the deferred $4.1 billion IPO plans makes them gradually step towards the plan. As according to BSNL's Director of Finance, SD Saxena, "This company is five to six times bigger. We will not rush into it. We will try to convince everyone. If there is a delay in the issue it is better. The valuation may go up."

However, the unions are apparently raging against the privatisation machine, stating BSNL can get a navaratna status without listing for an IPO. It imples to be among the nine Public Sector Enterprises (PSE), identified by the Government of India. It enhances financial and operational autonomy of the firm and empowers it to invest up to Rs. 1000 crore or 15 percent of their net worth on a single project without seeking government approval.