Tata group chairman Ratan Tata [ Images ] on Monday quit Videsh Sanchar Nigam [ Get Quote ] to take direct charge of Tata groups's telecom business where the company is committed to raise investment to the tune of Rs 30,000 crore (Rs 300 billion) by August 2006.

"Ratan Tata's resignation as chairman of VSNL today enables him to directly coordinate and control telecom strategy of the group in India [ Images ] and abroad as chief mentor and strategist," a group spokesperson told PTI after the VSNL board meeting.

Rata Tata, who catapulted the group as one of the top private sector entities with a market capitalisation of over Rs 100,000 crore (Rs 1,000 billion), is succeeded by Subodh Bhargava, whose appointment was cleared by the VSNL board at the end of nearly four-hour meeting.

Bhargava, a former president of Confederation of Indian Industry and a leading private sector executive, is the longest serving independent director in the board of VSNL, acquired by the Tatas from the government in 2002.

After becoming chairman of the Tata group in 1991, Ratan Tata restructured the entire group to pave the way for new emerging business with strong technological orientation and his success story included listing of Tata Consultatncy Service in 2004.

"Tata group companies investment in the telecom sector will be increased to over Rs 30,000 crore (Rs 300 billion) in the next 12-16 months {from the present level of Rs 20,000 crore Rs 200 billion)}," Kishore Chauker, managing director of Tata Industries, told PTI and added that Ratan Tata had been working on the telecom sector for the last