Telecom panel split on key issues

The Kamath Committee on the National Telecom Policy (NTP) has failed to arrive at a consensus on critical issues including liberalising the basic services market and the role of the Telecom Regulatory Authority of India (TRAI). These have now been referred back to the main Group on Telecom (GoT) for resolution. A case has been made for unlimited competition in the context of a technology paradigm where different services — data, voice and video — can be delivered through common transmission media.

CIL slashes fresh investment plans

Disillusioned with the sluggish trend of coal offtake by thermal power houses, Coal India Ltd (CIL) has slashed its fresh investment proposals at least for the next few years. Sensing that coal offtake is unlikely to register a significant growth, CIL has cut its capital outlay for 1998-99 fiscal to Rs.1,800 crores from Rs. 2,500 crores. CIL, it is learnt, has pruned its capital outlay for 1999-2000 too. As against its original plan to enhance the outlay substantially, it is now proposing to restrict its budget within Rs. 2,500 crores.

FIPB clears $400-m VSNL GDR issue

The Foreign Investment Promotion Board (FIPB) has cleared the issue of 11 million global depository receipts (GDRs) by Videsh Sanchar Nigam Ltd (VSNL), which is expected to help the Government raise $400 millions. VSNL had sought approval for the issue of ten million shares, besides a greenshoe option of one million shares. The clearance for the issue of GDRs is a clear pointer to the fact that the company and the Government are anticipating a better pricing from overseas investors. The FIPB’s approval will help the issuer to allocate the entire offering to foreign investors, if domestic institutional investors do not make a matching offer.

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