Speaking at the signing ceremony, Mahajan said: "It is a matter of great pride for our government to have successfully taken the disinvestment process forward. It only proves the grit and determination of our government to transform India into a vibrant and progressive state. I am happy that the Tatas have successfully bid for VSNL. I am sure they will take the company from strength to strength."

Ratan Tata said: "We have great respect for all that VSNL has achieved through its dedicated and extremely competent work force. The people and capabilities resident in VSNL will be a critical component of the Tata groups telecom strategy, and the partnership between our organisations will help us in providing end-to-end world-class telecom services to the Indian public."

Gupta said: "I am confident that the Tata-VSNL combine will be able to leverage their respective strengths together and evolve an effective and aggressive business strategy. This, I am sure, will benefit both the shareholders and the public at large."

VSNL, a domestic and NYSE-listed company with a FY2001 turnover of Rs 7,966 crore, has a workforce of around 3,000 employees. The company, over the years, has built up a very strong position in international long-distance, Internet and other value-added services. It also possesses a national long-distance license ().