Chennai, Sept. 14
Telecommunications Consultants India Ltd (TCIL) will involve its joint venture Tamil Nadu Telecommunications Ltd (TTL) in its projects as a part of a business plan that will see TTL get back in black.
TTL is a sick unit under the purview of BIFR, which has approved a rehabilitation package that includes TCIL bringing in additional equity and a one time settlement with banks.
TTL, promoted by TCIL, Tidco (Tamil Nadu Industrial Development Corporation), an industry development agency of the State Government, and Fujikura of Japan, for the manufacture of OFC cables, will also get into cable laying business and expand product lines with the support of TCIL and Fujikura, according to Mr K.B. Batra, Director (Finance), TCIL and Chairman, TTL.
Mr Batra, who was here today to address TTL's annual general meeting, said that it will supply cables for some of the major business orders TCIL has bagged and get into cable laying business. TCIL has a presence in 55 countries and will involve TTL wherever possible.
For instance, TCIL has been shortlisted for an “intrusion proof cable network” project for laying OFC cables for Defence Services. TCIL is to handle two packages totalling about 45,000 km of cable network out of a total of about 70,000 km. TTL will supply a portion of the cables for this project once it has received the formal approvals. Similarly, TCIL has bagged a $30-million order in Sierra Leone, for which TTL will supply cables.
TCIL has also charted out a Rs 75-crore investment plan in TTL. This includes Rs 50 crore for a fibre drawing plant and Rs 25 crore in an OPGW (Optical Ground Wire) Plant. OPGW is optical fibre embedded in ground wire cables used on high power transmission lines enabling use of power infrastructure for data transfer.
Fujikura, the technology and equity partner in TTL, has evinced interest in participating in these investments, according to Mr M. Sengupta, Managing Director, TTL.
Addressing the AGM, Mr Batra said that under the rehabilitation package, TCIL loan of Rs 15.43 crore along with the bank consortium loan of Rs 7.58 crore will be converted to equity. A portion of bank loan of Rs 9.83 crore will be settled under a one-time settlement and Rs 9.79 crore waived. TCIL will also provide a Rs-12.5 crore bridge loan for capital expenditure and working capital. The accumulated losses of Rs 27 crore will be wiped out as a part of the business plan.