Financial Daily from THE HINDU group of publications
Sunday, Jun 27, 2004
Financial Daily from THE HINDU group of publications Sunday, Jun 27, 2004 |
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Info-Tech
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Telecommunications Money & Banking - Financial Institutions Assocham moots setting up of Telecom Finance Corpn Our Bureau
New Delhi , June 26 THE Associated Chambers of Commerce and Industry of India (Assocham) has suggested the Government set up a Telecom Finance Corporation to cater to the requirements of the telecom industry, particularly the domestic telecom equipment manufacturers. The export volumes of domestic manufacturers have drastically declined from Rs 580 crore in 2001-02 to Rs 180 crore in 2003-04. According to the Chamber, the setting up of the corporation has become necessary in view of the fact that there is no lending agency that can extend financial assistance to telecom operators and equipment manufacturers at reasonable rates to meet their short, medium and long-term requirements. The Assocham President, Mr Mahendra K. Sanghi, in a representation submitted to the Telecom Ministry has said that in the proposed corpus, the Government should make considerable contributions as seed money and should also rope in banks and financial institutions to provide essential funds. Expressing concern over the falling export volumes of telecom equipment manufacturers and their rising import, he said the indigenous telecom equipment industry has virtually reached the bankruptcy stage. Therefore, it has become necessary for the Government to immediately arrest this declining trend of export of telecom equipment. Citing the example of some of the developing economies that provide export finance to its domestic telecom equipment manufacturers such as China, Korea, Thailand and Vietnam, the Chamber said that India should also follow suit in extending the export finance to its domestic industry so that the increasing equipment import is curbed and the industry again regains its lost share in the overseas market.
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