Business

Tata Tele's massive investment outlay

By Our Special Correspondent

NEW DELHI APRIL 10. Tata Teleservices, the basic telecom service provider, has drawn up a Rs. 8,250-croreinvestment plan, covering the next five years, to emerge as the knowledge economy leader. Already, it has invested Rs. 1,900 crores in Andhra Pradesh where it has been providing basic service since 1997.

The paid-up capital of the company is Rs. 602 crores comprising contributions from group outfits such as Tata Power (Rs. 300 crores), Tata Industries (Rs. 250 crores), Tisco (Rs. 48 crores), Telco (Rs. 2 crores) and Tata Chemicals (Rs. 2 crores).

According to Rajeev Bhargava, Chief Financial Officer of the company, a sum of Rs. 325 crores has come through advance towards equity. The balance formed the debt fund. Mr. Bhargava said the Tata group would chip in with a contribution of around Rs. 2,500 crores over a period to part-finance the Rs. 8,250-crore investment strategy. The investment programme will cover Andhra Pradesh and include Tamil Nadu, Karnataka, Delhi and Gujarat where Tata Teleservies had obtained licences to provide basic services. The company is set to ink a licensing agreement for providing basic service in Maharashtra.

Mr. Bhargava said the basic service operations in A.P. fetched a revenue of Rs. 148 crores for the year ended March 31, 2002. He indicated that Tata Teleservices would have a subscriber base of three lakhs by the end of the current financial year. At present, it has a customer base of 1.50 lakhs.

According to S. Ramakrishnan, Managing Director of the company, Tata Teleservices would be in a position to kick-start basic services in Delhi, Tamil Nadu, Karnataka and Gujarat latest by the third quarter of this year. In Tamil Nadu, indications were that the company could begin limited mobility and fixed wireless services soon.

Send this article to Friends by E-Mail

Business

News: Front Page | National | Southern States | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Obituary |

Stories in this Section

• Infosys surpasses revenue target
• New products, clients and markets
• Tata Tele's massive investment outlay
• Y. S. Kim to head greenfield project in U.S.
• Shortfall in tax collections
• Tisco signs pact with world steel giants
• BHEL power sector SR profit up 34 p.c.
• Ranipet unit posts Rs. 23 cr. profit
• Insys, Satyam aid Sensex recovery
• Boeing introduces long haul business jet
• Amway targets Rs. 1,000 cr. turnover by 2003
• Biocon and Shanta JV for human insulin
• Exchange rates
• Stock Market Index
• Bullion rates

Copyright © 2002, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu