The Hindu Business Line : IFC lends $100 m to Idea Cellular

MUMBAI: IFC, a World Bank member, has lent $100 million loan to Idea Cellular to strengthen its network and enable the telecom company to offer services in Bihar.

“Improving communications infrastructure creates opportunities for many people and businesses in India, particularly in under-served areas such as Bihar,'' IFC Director, Mr Mohsen A Khalil said in a release.

Bihar is one of the few states in India without a well-developed telecommunications network.

“IFC's investment will provide the much-needed long-term funding that many companies in India find difficult to access while helping expand the local telecommunications infrastructure,'' Idea MD, Mr Sanjeev Aga said.

The company recently launched its services in Mumbai.

“We will soon be providing services in Bihar,'' he said.

Telecom penetration in Bihar is less than eight per cent now. It is expected to touch 20 per cent by 2012.

IFC and Idea are developing a project that will establish Pocket Public Calling Offices to deliver mobile phone-based communications and other value-added services to under-served rural areas.

IFC fosters sustainable economic growth in developing countries by financing private sector investment, mobilising private capital in local and international financial markets, providing advisory and risk mitigation services to businesses and governments .

Idea Cellular is a GSM mobile service provider. It has licenses to operate in 22 areas. Idea plans to launch operations in Bihar, Jharkhand, Orissa and Tamil Nadu before the end of this fiscal. - PTI

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