The Hindu : Business : TNTL to be revived with equity re-jig

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Friday, Jul 10, 2009
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TNTL to be revived with equity re-jig

Special Correspondent

NEW DELHI: Stating that the Government was committed to the revival of Tamil Nadu Telecommunications Limited (TNTL) and turn it around into a profitable unit, IT and Telecommunications Minister A. Raja informed the Rajya Sabha on Thursday that state-owned Telecom Consultants India Ltd (TCIL) had hiked its stake in TNTL with this aim in mind.

Replying to a question in the Rajya Sabha during Question Hour, Mr. Raja said that TCIL’s stake in Tamil Nadu Telecommunication would rise to 49 per cent after a re-adjustment of equity. He said TCIL had given a loan of Rs. 17 crore to TNTL and the same was now being converted into equity.

TNTL has been declared sick and a revival plan has now been approved by a Committee of Secretaries. TNTL also had Rs. 27 crore outstanding bank loans which are also being converted into equity. “After loans are converted into equity, the company will be revived,” Mr. Raja said.

Before the equity re-jig, TCIL held 30.67 per cent stake in TNTL, Tamil Nadu Industrial Development Corporation (TIDCO) had 29.49 per cent, strategic technical partner 14.47 per cent and public holding stood at 25 per cent. After the re-adjustment exercise, TIDCO’s equity shareholding would come down to 14.63 per cent while State Bank of India would acquire 16 per cent, he said. The shareholding of technical partner would come down to 0.718 per cent while public holding would be 12 per cent.

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