In fact, other joint venture partners have in turn put in pre-conditions before bringing in their equity component and sources in Agrani said that it would take another 60-70 days for sorting out the entire issue.

The Subhash Chandra-promoted satellite project is yet to achieve financial closure.

"We have taken an in-principle view on investing $50 million in the venture for picking up a 13 per cent stake. We are, however, not going to bring in any money till other partners like Lockheed Martin bring in their equity contribution," said a VSNL source.

Lockheed Martin has been selected as the vendor for the geo-stationery satellite, as well as for the infrastructure required to set up the gateways. Lockheed Martin's equity contribution would, however, beseparate from the supplies it is to make towards Agrani.

Sources in Agrani confirmed that various joint venture partners were putting certain pre-conditions before investing in the project. "We should be able to get all partners to bring in their equity in the next couple of months. In the meantime, we are also tying up the debt component so that we can get closer to attaining financial closure," said a source associated with the project.

The $755-million project envisages a debt-equity ratio of approximately 1:1. Out of the $375 million paid up equity, $120 million would be the promoters' contribution, and, VSNL and Lockheed Martin are to put in $50 million each. Further, the promoters are also looking at other options including a private placement at a later stage.

As far as the debt component is concerned, IFCI has already approved a loan worth Rs 300 crore to Agrani. Further, Agrani is also talking to other FIs like IDBI for raising the loan component.

Sources said that since the project isprimarily targeted at Indian consumers thus the endeavour to go for long-term rupee loans.

The Agrani satellite system is slated for launch in 2001 and the services are expected to commence the following year. The system is designed for mobile telecommunication services, KU-band and C-band telecommunication services and KU-band broadcasting services for direct-to-home applications.

There will be four gateways for Agrani in India -- one each in Mumbai, Calcutta, New Delhi and Chennai. VSNL is planning to own and operate atleast one of these four gateways. It would also have the contracts for maintaining the gateways and further earn revenue from interconnectivity charges.

VSNL is also investing in ICO Global satellite system. It is of the view that it should have a presence in a global and a regional system which is Agrani. Agrani would be operating in South and West Asia.