Panel to discuss telecom finance corp on July 2

Corporation to facilitate investments in the telecom sector

The Telecom Commission (TC) is likely to meet on July 2 to discuss formalities for creating a finance corporation to facilitate investments in the sector.

The Cabinet has already approved creation of the Telecom Finance Corporation under the National Telecom Policy, 2012. According to a recent communication, TC will also discuss the possibility of divestment of equity in Telecommunications Consultants India Ltd (TCIL) in its July 2 meeting.

TC will also review the status of the National Optical Fibre Network and the progress made. Earlier, the government had sought the TC’s opinion on the the proposed initial public offering (IPO) of state-owned Telecommunications Consultants India Ltd. TC had planned to take up the issue in its meeting in February 18. But the matter was deferred.

In March 2012, the Department of Disinvestment had decided to divest 10 per cent in TCIL. Telecommunications Consultants was also given the option of taking a call on fresh equity infusion. In June 2009, the board of directors of TCIL had approved a proposal to issue 4.32 million equity shares of Rs 10 each through an IPO.

TCIL’s consolidated net worth was Rs 1,331 crore as on September 30, 2012, while its stand-alone net worth at the time stood at Rs 428 crore. It had paid a cumulative dividend of Rs 118 crore to the government.

TCIL, meanwhile, has increased its authorised capital to Rs 60 crore from Rs 30 crore for the proposed initial public offering.