Cabinet clears TLL revival plan, TCIL' stakes rise to 49 pc

NEW DELHI: The government on Thursday approved a revival plan for Tamil Nadu Telecommunications Ltd that involves increasing co-promoter Telecommunications Consultants India's equity in the firm to 49 per cent.

The equity capital of TCIL in TTL will now go up from Rs 6.95 crore to Rs 22.38 crore.

The equity increase will be in the form of conversion of loans to share capital to the extent of Rs 15.43 crore. Besides, TCIL has been authorised to provide bridge loans of Rs 12.5 crore till loans from banks are arranged.

"The capital restructuring will revive the company (TTL) and TCIL shall not have to write off the loans and equity," Information and Broadcasting Minister Amika Soni said after a Cabinet meeting.

However, the financial revamp of TTL is subject to TCIL finding a private strategic partner "within a reasonable time."

TTL, a listed firm, is engaged in manufacturing of telecommunication and optic fibre cables. Incorporated in 1988, it has been romoted by Tamil Nadu Industrial Development Corporation and TCIL.