More Than Just Plain Old Vanilla

Tata Electric Companies (TEC), the city-based power major, is planning a foray into the Internet sector and has decided to focus on telecom. "We are exploring how TEC can get into the telecom sector," chairman Ratan N Tata said at the company's annual general meeting here yesterday. The company is eyeing the Internet service provider (ISP) business. "We will like to focus on the telecom sector as it has a lot of potential," he stated.

TEC's investment in telecom will be through group companies which already have a presence in the sector. Tata said the current problems in the telecom sector should be seen in perspective. Globally, investments in telecom are seen as gilt-eyed. TEC has already invested in the telecom sector through its group companies. It is eyeing both basic and cellular services.

Replying to questions from shareholders, Tata threatened to move the courts on the issue of BSES being given permission by the Maharashtra cabinet to set up a 495 mega watt project at Palghar. He contended that this was against the recommendations of the Kukde committee which was constituted by the state government about two years ago to study the power situation in the state. It had been submitted its report over a year ago.

Tata admitted that there was pressure on the company due to the economic slowdown which resulted in decreased offtake of power from TEC. He said the company's income had been affected due to the fall in the Bank Rate. This was, however, compensated partially due to the sale of power from the Jojobera plant and the acquisition of a power project at Wadi.

Tata made it clear that distribution will be a key area of focus for TEC. "The future clearly depends on obtaining additional areas for distribution. Negotiations are on with Maharashtra State Electricity Board for new areas. The company also plans to increase the customer base in the licensed area," he said.

TEC has chalked out a Rs 4800-crore expansion plan. It proposes to invest Rs 2500 crore in independent and captive power projects. d has signed a memorandum of understanding with krishak Bharati Cooperative Ltd (Kribhco) for supply of 3.6 million standard cubic metres of gas per day for second phase of Kribhco's project at Hazira in Gujarat.">