Watch On Holding Pattern In Cellular Firms
DoT's reluctance in clearing the change of partners relates to a tender condition that no single promoter company can be part of more than one consortia. The decision comes in wake of communications minister Beni Prasad Verma's directive to top officials of the department that all tender guidelines should be adhered to.
Some weeks ago, DoT had asked two companies, in which the $100-billion American Insurance Group picked up stakes, to furnish details. AIG had decided to pick up 10 per cent stake at par in Tata Communications, a cellular licensee for Andhra Pradesh. It had also decided to invest 49 per cent in Modi Welvest, the holding company for Modicom Networks, at a reported premium of Rs 5 per share. Another 51:49 holding company proposal between Himachal Futuristic Communications Ltd and AIG is pending with DoT.
In a reply to DoT, Tata Communications has pointed out that AIG had picked up stakes in it and Modi Welvest through two separate entities. While the stake in the Tata company was picked up by an AIG investment arm based in New York, the investment in Modi Welvest was made through Asian Infrastructure Fund (AIF), a fund led by the government of Singapore. AIG sources confirmed that the insurance giant has a small stake in AIF.
DoT has not yet reacted after receipt of the letters from Tata Communications and Modicom Networks. Neither has it decided on another proposal by the R P Goenka group to pick up 66 per cent equity in HHS Communications, a cellular licensee in Andhra Pradesh.
Sources say DoT is studying the issue of change in partners because one of the Madhya Pradesh cellular licences has been issued to CCIL-Airtouch Communications, in which the RPG group holds a stake through Cellular Communications India, a group company.
RPG officials handling telecom ventures were not available for comment. The group had sought to pick up 66 per cent equity in the company some months back. Of the remaining 34 per cent, Singapore Telecom