EXHIBIT 3


                                                                   Satish Ranade
                                                  ED (Legal) & Company Secretary

HQ/CS/CL.24B/9876
9 May 2003

Sir,

     SUB: VSNL VOLUNTARY RETIREMENT SCHEME (VRS-2003).

Pursuant to Clause 36 of the Listing Agreement, intimation is hereby given that
VSNL will introduce Voluntary Retirement Scheme for its employees. The objective
of the scheme is to rationalise manpower in line with current business scenario
and provide financial support to employees who are willing to explore other
avenues after separation. The scheme opens on 15 May 2003 and closes on 14 July
2003.

Thanking you,


                                                               Yours faithfully,
                                                For Videsh Sanchar Nigam Limited


                                                                   Satish Ranade

To :

To :
1)   Security Code 23624, The Stock Exchange, Mumbai, Corporate Relationship
     Department, 1st Floor, New Trading Ring, Rotunda Building, Phiroze Jee Jee
     Bhoy Towers, Dalal Street, Mumbai - 400 001. Fax No.(22) 2722061, 2721072.

2)   The Secretary, Madras Stock Exchange Limited, Post Box No.183, 11, Second
     Line Beach, Chennai - 600 001. Fax No.(44) 524 48 97.

3)   Security Code 32149, The Secretary, Calcutta Stock Exchange Assn. Ltd, 7,
     Lyons Range, Calcutta - 700 001. Fax No.(33) 220 25 14/28 37 24.

4)   Security Code 22064, The Secretary, Delhi Stock Exchange Assn. Limited,
     3/1, Asaf Ali Road, New Delhi - 110 002. Fax No.(11) 329 21 81.

5)   Security Code 5251, The Asst. Manager (Listing), National Stock Exchange of
     India Limited, Capital Market - Listing, Exchange Plaza, Bandra Kurla
     Complex, Bandra (E), Mumbai - 400 051.Fax Nos. : (22) 6598237/38.

6)   National Securities Depository Ltd., Trade World, 4th Floor, Kamala Mills
     Compound, Senapati Bapat Marg, Lower Parel, Mumbai - 400 013. Fax Nos. :
     497 29 93.

7)   Mr. Anish Kumar, The Bank of New York, Express Towers, 13th Floor, Nariman
     Point, Mumbai - 400 021. Fax No.204 49 42.

8)   Head Office : M/s. Sharepro Services, Satam Estate, 3rd Floor,Above Bank of
     Baroda, Chakala, Andheri (E), Mumbai - 400 099 Ph. 821 5168 / 820 2108 /
     820 2114, FAX 837 5646

9)   Ms.Caroline Yap, Managing Director, International Client Services, New York
     Stock Exchange. No. :+1 2126565071

10)  Mr. Hitendra Patil, Vice President (Operations) Central Depository Services
     (India) Limited Phiroze Jee Jee Bhoy Towers, Dalal Street, Mumbai - 400
     023. Fax : 267 3199

11)  Mr. A.K. Gupta, DGM(FA), for SEC filing requirements, Fax 1195