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Tatas to invest $2 bn in telecom push
March 04, 2004 17:57 IST
The Tata Group plans to invest about $2 billion in telecom during the next two years towards expansion and roll-out in new circles.
K A Chaukar, managing director of the Tata Industries Ltd told reporters on the sidelines of a CII Telecom Summit 2004 that the amount would be used for expanding in the existing six telecom circles of Delhi, Maharashtra, Gujarat, Andhra Pradesh, Karnataka and Tamil Nadu, as well as for roll-out in 11 new circles.
"The expansion in the six circles will happen in the next one month or so and the launch in the 11 new circles will happen in 3-4 months after that, Chaukar said.
Tatas recently got 11 new unified licences for offering mobile services for which the company paid Rs 450 crore (Rs 4.5 billion) to the Department of Telecom towards one-time entry fee.
New licences are for circles of Uttar Pradesh (E), Uttar Pradesh (W), West Bengal, Kolkata, Bihar, Orissa, Rajasthan, Himachal Pradesh, Haryana, Punjab and Kerala.
With this the Tatas would have presence in 17 circles.
Elaborating on the funding of investment plan of $2 billion, Chauker said, "Some of it can come internally...some of it can come as debt."
"We normally go for a debt equity ratio of 1:1," Chaukar added.
To a query on whether the growth plans of the company would suffer if the foreign investment cap did not increase to 74 per cent from the existing 49 per cent, Chaukar said, "If it is not there and we have growth plans, we will have to find alternate means for finding money."
"I do not think it is a serious problem as of now," he said.