The details of the public offer are being worked out, said company sources. Ortel, which operates Internet services in Orissa with 30,000 subscribers has already set up a 2000km hybrid fibre co-axial network between Bhubaneshwar, Cuttack and Paradeep in the state.

The company also runs Orissa's largest cable television network Sky View with 46 satellite television channels.

Ortel intends to increase the size of the network by another 3000km and is targetting a subscriber base of more than a lakh by 2001. The company is also looking to provide a range of telecom value added services including high speed internet access, basic telephony, e-commerce and video conferencing.

The company has also got the necessary approval for foreign investment of Rs 11.28 crore up to 49 per cent. United Kingdom based Commonwealth Development Corporation(CDC) will pick up a 42 per cent stake amounting to Rs 8.50 crores by issue of enhanced paid-up capital of the company.

Another 7 per cent stake amounting to Rs 2.78 crore will be offered to NRI's and OCB's in the capital base of the company.

The exisiting shareholder Finlay Corporation Ltd (OCB) which has a 27.65 per cent non-repartriable holding in Ortel will divest the entire stake in favour of the Indian promoters.

Ortel is eyeing the basic telephone business and is likely to bid for the Orissa circle once bids are invited by the end of this year. The Orissa licence had earlier been awarded to Himachal Futuristic Communications Ltd (HFCL).

The company is also talking to a number of foreign companies for its plan to provide internet access via the cable network. Ortel intends to provide high speed internet access using cable modems in the near future.

The company has already invested Rs 16 crore in the Orissa project till date. This amount has been financed by promoters and through internalaccruals.

The total project cost is estimated at Rs 29 crore in the first phase. In the second phase, the company intends to invest only on the Internet related business.