The government said on Wednesday that it would consider on commercial ground the request from Ratan Tata to route international long distance traffic of state owned Bharat Sanchar Nigam Ltd through Videsh Sanchar Nigam Ltd even after March 2004, a move that could stall the PSU to forey into ILD operation for which it has already acquired a licence.

"If infrastructure (by VSNL) is already available and alternate infrastructure (by BSNL) is set up then it is using the country's resources... so why not use underutilised infrastructure but on a commercial basis," Communication Minister Arun Shourie told reporters in New Delhi.

"Ratan Tata has written a letter to Finance Minister Jaswant Singh and me. I also feel that there is no point in duplicating the infrastructure. But whatever decision is taken it will be purely on commercial grounds," he added.

It may be recalled that VSNL, at the time of its divestment last year, was given a status of 'favoured carrier' of ILD traffic of two PSUs -- BSNL and Mahanagar Telephone Nigam Ltd -- for a period of two years, which will end in March next year.

Ratan Tata is understood to have met Shourie early last month followed by a formal letter containing several proposals for improving VSNL, whose fortunes took a sharp dip recently due to increased competition that forced the company to cut ISD rates.

Asked if it could mean that BSNL would not launch its ISD operations, Shourie said, "I will not pre-judge the issue."