Sources close to Chandra told The Financial Express that "both the projects will remain independent of each other". Chandra's Agrani project is a regional satcom venture focussed on the Asian region and is currently tying up finances through a number of domestic institutions to achieve financial closure. Sources added that among other things, technical issues would stand in the way of a merger. "Though both the projects offer satellite-based telephony services, there are major technical differences in both the projects," they added.

"If Chandra buys a stake in ICO Global, it will in no way hamper the progress of the Agrani project and both projects will co-exist and remain independent," the official added.

A company spokesperson in Mumbai said that the ICO Global bid will be financed through an international consortium involving several leading investment bankers and strategic partners.

Declining to give the names or the exact details of the financial bid, the spokesperson said, "the last has not been heard of in our bid, the final decision has still not been taken by the US court."

Chandra's whopping bid of nearly Rs 5,200 crore has come as a surprise to industry circles, who seem convinced that satcom projects are bad investments in the present scenario.

Chandra is pitted against some fierce competition, and seems to have won round one of the fight for ICO, which is a consortium of 60 strategic investors including national telecom companies like Videsh Sanchar Nigam Ltd.The US bankruptcy court in Delaware alongwith courts in Bermuda and Caymen Islands which is hearing the ICO Global Chapter 11 bankruptcy proceedings since August 27, has already approved $150 million interim debtor-in-possession financing of ailing satellite communication company ICO Global by Craig O McCaw and affiliate companies, Teledesic LLC and Eagle River Investments LLC.

Teledesic, Eagle River and McCaw had agreed with ICO on October 31 to lead a group of international investors to provide up to $1.2 billion in new financing to the company, subject to, among other things, confirmation and consummation of a reorganisation plan. The company will seek final approval from the court on December 3, 1999 for the balance of the first tranche of $225 million, together with the second tranche of $275 million.

ICO chief executive officer Richard Greco also expressed his satisfaction at the progress towards completion of ICO's financing needs. "Approval by the court of $150 million in financing represents a very important step forward for us. I am very pleased that we have been able to maintain our momentum in the efforts to restructure the company and press forward towards commercial implementation," he said in a statement posted on the company's website.