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Intelsat amendments ratified

Our Bureau

NEW DELHI, July 10

THE Union Cabinet has ratified amendments to the International Telecommunications Satellite Organisations (INTELSAT) agreement and the INTELSAT operating agreement.

``The ratification was necessary because INTELSAT intends to commence operations as a privatised company by July 18 this year,'' the Minister for Parliamentary Affairs, Mr Pramod Mahajan, told newspersons here on Tuesday.

The Cabinet also decided to transfer VSNL's investment in INTELSAT to the privatised INTELSAT company. The present total investment of VSNL in INTELSAT stands at Rs 255.15 crore.

Currently, INTELSAT has a representation of 145 member-countries holding investment shares valued at $1 billion. INTELSAT is currently undergoing restructuring exercises whereby it will be recast to invite private participation.

There will, however, remain a supervisory inter-Government organisation which will be known as International Telecommunication Satellite Organisation.

It is envisaged that the privatised INTELSAT will have commercial flexibility to create value for its customers. It is also estimated that this exercise will raise INTELSAT revenue from $1 billion in 2000 to $4.2 billion by 2009.

TCIL's investments in UTL: The Cabinet on Tuesday approved an investment of $9.05 million by Telecommunications Consultants India Ltd (TCIL) for a 26.66 per cent stake in United Telecom Ltd (UTL), Nepal.

UTL is a joint venture company that has been set up for providing WLL-based basic telecom services in Nepal. A consortium of four companies -- TCIL, MTNL, VSNL and Nepal Ventures Pvt Ltd (NVPL), a local Nepalese company -- was formed for bidding in the tender under the name of United Telecom Ltd.

TCIL, MTNL, VSNL and NVPL hold 26.66 per cent, 26.68 per cent, 26.66 per cent and 20 per cent respectively in UTL, which emerged as the only qualified bidder after the bidding process.

The Cabinet also approved TCIL's submission of corporate guarantees, bank guarantees and other comforts proportionate to its equity stakes to lenders of loans/facilities/vendors/Government of Nepal or any other agency as may be required.