Siemens To Float Leasing Subsidiary

Chairman F A Mehta said the company was forced to set up this new company as its orders in telecommunications did not materialise to the full extent and also the orders did not pay for in the manner expected by the company.

Addressing shareholders at the company's 39th annual general meeting here yesterday, Mehta said the proposed company will be a subsidiary of Siemens Ltd. What was supposed to be incidental thing (to enter into leasing in basic telecommunication) has now become fundamental, Mehta added.

With borrowings scaling high, Siemens Ltd is planning to come out with a fixed deposit scheme.

Mehta pointed out that the company was also considering debt instruments to raise money.

K Pernstich, managing director, who leaves Siemens Ltd by the end of this month review the company's performance in his tenure (since 1992). Siemens has been concentrating on infrastructure projects in power and telecommunications.

Pernstich said Siemens will only enter the field of power generation, transmission and distribution leaving out the day-today operations of the power station to other companies.

Siemens AG, the parent company of Siemens has already entered into an agreement to set up three power plants, one each in Madhya Pradesh, Rajasthan and in the East, having a total generation capacity of 1,600 MW. The German firm will pick up equity to the extent of 15 per cent in each of these power plants.

Siemens AG has already negotiated with the promoters of these three power plants for EPC contracts.

Pernstich added that the promoters were in the process of negotiating power purchase agreements with the respective state electricity boards.

During April-August 1996, Siemens turnover has gone up by 38 per cent. The company's order books has increased by 24 per cent compared to the corresponding period last year.