Tata Communication to raise fund for expansion
By siliconindia   |   Wednesday, 14 January 2009, 20:55 IST   |    3 Comments
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Bangalore: Penalized by the recession, telecom firm Tata Communications is speculating over raising funds for expansion. The company has written to the government seeking permission to raise the needed funds. The firm requires the money to carry out its expansion plans including bidding for the upcoming auction for the broadband wireless spectrum. It has asked the government to relax the shareholders' agreement that puts a cap on the total indebtedness of the company. Tata has approached the Department of Telecom (DOT) since the Government holds 26 percent stake in the company. "According to the Managing Director and CEO of the company, its funds position is reaching a critical stage in January, and hence, the DoT as 26 percent shareholder may like to allow the company to pursue non-debt funding in a manner consistent with its interest in the company," said an internal DoT note. It is also said that the request is likely to be approved by the government. As per DOT sources, the company has indicated that the existing financial crisis and deferred sales to customers was having an adverse impact on its plans. It is also said that the board members of the company are surmising on a 430 crore deal, whereby it will sell a part of its holding in Tata Teleservices to NTT-Docomo.

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