Telecom Finance Corporation to get capital infusion of Rs 1,000 cr from govt

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Telecom Finance Corporation (TFC) may get the capital infusion of Rs 1,000 crore by the government to address funding challenges facing the sector.

As per the reports, "The Authorised capital is proposed as Rs 10,000 crore, out of which the initial paid up capital shall be Rs 1,000 crore."

"The initial equity capital is proposed to be sought through budgetary support. Initially, the government of India will have 100 per cent shareholding in TFC."

As per the plan, TFC will be registered as non-banking financial corporation and non deposit infrastructure finance company.

The fund infusion for TFC is proposed to be done through taxable as well as tax-free bonds, term loans from banks and other financial instruments, off-shore borrowings from multilateral agencies such as Asian Development Bank, International Monetary Fund and the World Bank.

The government estimates that the debt market in telecom sector under the 12th Five Year Plan (2012-17) should be around Rs 7.55 lakh crore and TFC will initially target 5 per cent of this debt market.

TFC will look in to financing need in the sector mainly related spectrum, network roll-out and telecom equipment manufacturing.

Read more about: tfc
Story first published: Thursday, June 20, 2013, 9:20 [IST]
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