TCIL to exit Bharti Hexacom
27 Aug 2009
The government has in principle approved the exit of Telecommunications Consultants India Ltd (TCIL) from Bharti Hexacom Ltd (BHL).
The cabinet committee on economic affairs has accorded in-principle approval to a proposal by the department of telecommunications (DoT) to this effect on the condition that it should be done at the right time to obtain the best price.
TCIL has a 30-per cent stake in Bharti Hexacom Ltd while private sector Bharti Airtel holds majority 70 per cent in the company.
TCIL was set up in 1978 under the administrative control of DoT, ministry of communications and information technology, as a wholly owned government undertaking, for providing telecom expertise to friendly developing countries.
In 1995 TCIL incorporated a joint venture company named `Hexacom India Ltd' (HIL) to enter cellular services for diversifying its operations. BHL operates in Rajasthan and North East circles. TCIL has a 30 per cent equity stake in BHL.
TCIL sought dividend pay-out while adopting annual accounts every year but this was not agreed to by the Bharti group on the ground that BHL was using all its internal generations for expansion of network to keep pace with the intense competition in the market. TCIL has neither received any return on its investment nor had any effective say in the company. T
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