US-based telecom giant AT&T has been looking for opportunities to roll out is operations in India, the world's fastest-growing telecom market. The company is said to have approached the state-run Bharat Sanchar Nigam Ltd (BSNL) for buying stakes in the public sector firm, which is learnt to have received approval from the central government for carrying out Initial Public Offer to disinvest 10 per cent stake.

A person familiar with the development said: "AT&T has expressed interest in BSNL. But BSNL top brass has conveyed to AT&T that only the government can decide on the matter." He said that government will not allow BSNL, fully owned by government, to sell majority stakes in the PSU, given the sensitivity associated with it and a prospective stiff resistance from the opposition parties.

AT&T may have to arrange Rs 16,000 crore, based on current share prices, for acquiring a one-fourth stake in the BSNL, having presence in 21 telecom circles of the country. Both AT&T and BSNL, however, declined to comment over the issue.

BSNL chairman and MD Kuldeep Goyal said: "BSNL is not even listed and any such move will require a lot of regulatory approvals."