Aircel Set To Complete UP East Network Expansion By July End

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Essar group-promoted Aircel Digilink India Limited (ADIL) will complete its expansion plan for the Uttar Pradesh (East) cellular circle by the end of this month. ADIL provides cellular services in the Rajasthan, UP (East) and Haryana circles.

“Our overall capacity in UP (East) will increase three-fold, from 35,000 lines to the the final target of 1,00,000,” Essar Teleholdings chief executive officer Vikas Saraf told eFE. The expansion plan for this circle was put into action around the end of February this year.

According to Mr Saraf, the deadline for the expansion will be met. It had been earlier reported in the eFE that ADIL was looking to raise Rs 100 crore in debt, to fund expansion plans in its three cellular circles.

The company has already received Rs 30 crore from the Vysya Bank for the UP (East) circle. The remaining Rs 70 crore that it will get from the bank, will be used for Rajasthan and Haryana. Mr Saraf said it was still too early to comment on when the process would be completed in Rajasthan and Haryana. ADIL is targeting a total capacity of 2.5 lakh lines in the circles where it operates.

UP (East) had a total subscriber base of 1.15 lakh in May 2002, according to figures released by the Cellular Operators’ Association of India (COAI). This is evenly split between Aircel and the Vinay Rai-promoted Koshika Telecom. Mr Saraf had earlier told eFE that the UP (East) circle was facing a capacity constraint which was affecting both the operators.