New Delhi : The government is considering a review of the foreign direct investment in the telecom services area. A committee has been appointed under the chairmanship of the finance Minister to review the sectoral cap of 49 per cent equity investment in the telecom services. The report of this empowered committee is expected shortly.The announcement came from the minister of state for communications, Mr Tapan Sikdar, at a conference on `Telecom Financing in the Wake of Convergence" in New Delhi organised by The Associated Chambers of Commerce & Industry.
Trying to alleviate financing concerns, Mr Sikdar added that the government was contemplating the establishment of a National Telecom Financing Corporation covering the infotech and broadcasting sectors.
"There is an urgent need to formulate a national telecom financing policy to cover the IT and broadcasting areas. There has to be a new sector of lending and borrowing based on new kind of securities," Mr Sikdar added.
He said that the government was expediting the finalisation of the financing policy to address the funding requirements of convergence which were expected to mount to Rs 50,000 crore by the year 2005.
According to Mr Sikdar, a rural telecom financing policy was also being formulated in consultation with the telecom, IT and broadcast sectors.While requirements for funds and the dearth of them was being spoken about, Mr SK Chakrabarty, director IDBI came out with a disclaimer that the financial institutions had adequate funds for financing telecom projects.
"As of now there are no telecom projects before the financial institutions." He later clarified that part of the funds available for teleocm projects remained unutilised. Fifteen per cent of IDBI's total funds are reserved for the telecom projects.
Bharti approaches IFC for guaranteeing part of credit
Bharti Enterprises is negotiating with the International Finance Corporation (IFC) to credit enhance part of its debt instrument. Thereafter, the company will approach the domestic debt market with the debenture issue. Mr Akhil Gupta, joint managing director, Bharti Enterprises said: "We are talking to IFC to stand guarantee to about Rs 200 crore of the total Rs 275 crore debenture issue to be floated soon."
Elaborating on the procedure for the credit enhanced instrument, he said that the paper after being guaranteed by IFC would be credited by a credit rating agency.
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