The Telecom Ministry is likely to ask the private sector telecom company Bharti Airtel to give at least 20 per cent dividend to public sector TCIL which holds 30 per cent stake in Bharti Hexacom.

Hexacom offers mobile services in six north-eastern states (excluding Assam) and Rajasthan and has a little over 15 million customers. The government owns 30 per cent in Bharti Hexacom through Telecom Consultants of India (TCIL).

“Since Hexacom is a debt-free company, its shareholders should be rewarded with a nominal dividend. We are in talks with Bharti Airtel officials regarding payment of dividend to the shareholders. I think they will have to pay at least 20 per cent as dividend which Bharti has given to its own shareholders,” a senior Telecom Ministry official said.

For the fiscal year 2010-11, Bharti Airtel has paid 20 per cent dividend to its shareholders.

Meanwhile, the government has shelved plans to sell the its 30 per cent stake in Bharti Hexacom.

Though the TCIL board had been looking to exit for a while, it has decided to stay invested in light of Hexacom’s strong performance, coupled with the prospect of higher valuations with the introduction of 3G technologies, the officials said.

Last month, Bharti Airtel had offered to list its subsidiary to provide an exit option to its minority joint venture partner TCIL.

DoT officials said that Bharti Airtel’s offer to list may not have been explored due to differences of opinion.

Bharti airtel also has the first right of refusal to this stake.

Earlier, when TCIL had expressed its intent to exit Hexacom, the government had invited bids for its stake last year after Deloitte had fixed a base price of Rs 1,800 crore. But the sale process was put on hold in May 2011 after Cabinet Secretary had sought that the base price be re-evaluated following complaints that it was too low, especially, considering that Hexacom had a turnover of over Rs 1,700 crore and profits of over Rs 400 crore in 2010.