New Delhi, Aug. 28 :    New Delhi, Aug. 28:  The Cabinet will take up the issue of corporatising the newly-created department of telecom operation and department of telecom services under the single head of Bharat Sanchar Nigam Limited (BSNL) tomorrow. Prime Minister Atal Behari Vajpayee had dropped such hints after consultation with communication minister Ram Vilas Paswan about corporatising the telecom sector by October 1. The decision to corporatise and pave the way for privatisation was taken a few months ago after Paswan announced free phones for telecom employees. But Cabinet ministers who have received the four-page note on telecom corporatisation as part of tomorrow's agenda are viewing the move with some scepticism. BSNL - as conceived in the note - has an authorised share capital of Rs 10,000 crore and a paid-up capital of Rs 5,000 crore. Critics are asking why the government is hurrying the process when the consultants, A.F. Ferguson, had submitted only its interim report on July 31 and the first volume of the final report is expected on August 31. The proposal is also yet to get many clearances. Though the new corporation will be set up under the Companies' Act, it has not received approval of the ministry of law and company affairs. The finance ministry has not given its nod either. Many in the Cabinet suspect that the Prime Minister wants to rush Cabinet approval because he is leaving for the US next week. The note has been found to be 'unclear' on many counts. It does not say what will be the fate of employees who will be automatically absorbed into the new corporation. It also says nothing on pension and other liabilities of the employees and their promotional avenues in the new corporation. The note does not spell out the details of a probable voluntary retirement scheme. A group of ministers under Paswan had been set up to look into the corporatisation issue. The note is silent on whether that report is ready or not. Once the first volume of the consultancy firm's final report comes, the government will be in a better position to argue its case. The volume is expected to contain detailed assessment of the net worth of the new corporation and a proper valuation of its assets. Sources say Vajpayee, who has won a turf war in Nagpur where he had his partymen toeing his line on reforms, does not want to slow down the pace of liberalisation. He is aware that since he will be away for the most part of September, the corporatisation process in the telecom sector will be stuck without Cabinet approval. There are also a few critics of bringing DTS and DTO under a single corporation. They point out that DTO, which is virtually a one-man body, came into existence only a few months ago and that now stands to be reversed. DTS too was formed only last year. However, the case being made by the government is that all these steps were taken to slowly but surely achieve the final goal of corporatisation. The note says the headquarters of BSNL will be in New Delhi. But many ministers have objections to this and are insisting that it be based in a city other than Delhi and Mumbai.