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Kripa Raman

Mumbai , Aug. 15

MAHANAGAR Telephone Nigam Ltd, which has long been eyeing overseas investment opportunities, is now eyeing Sri Lanka.

A report following an exploratory trip to Sri Lanka by two Mahanagar Telephone Nigam Ltd's officials has been submitted to the corporate office and will be sent to the Ministry of Telecommunications, said a senior official with MTNL.

The Ministry, especially the Minister for Telecommunications, is keenly interested in the matter, he said.

The MTNL team to Sri Lanka comprised officials of the rank of General Manager, but their preliminary report will be the basis for further follow-ups on the options available to MTNL in that country. The team had met with the telecom operators as well as the regulator there.

MTNL has reserves of over Rs 2,000 crore. Although it has investments lined up for modernisation and for its broadband and wireless ventures (both in CDMA and GSM), there would still be cash in the kitty, which will be augmented with every passing quarter, said an official.

The company cannot invest beyond the circles of Mumbai and Delhi to which its domestic operations are restricted. Overseas opportunities would be a good way to deploy the cash lying with the company, said a senior executive at the state-owned telecom company.

Already, it has interests in an operating company in Nepal and another in Mauritius. "We would especially be exploring investment opportunities in the African and SAARC regions," said an official with MTNL.

MTNL's earnings are under threat due to falling tariffs in the country and also due to competition whittling away its fixed line subscriber base. Overseas operations could offer the corporate opportunities for growth that are scarce domestically.

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