Jul 9, 1999|
Telecom Projects: Taking off
With the revenue sharing arrangement with the telecom operators and the government in place, financial institutions are gearing up to fund the telecom projects as early as mid-September.
The increasing willingness of financial institutions stems mainly from the fact that the banks are now more open to the idea of financing such projects. The financial closure of a project is largely dependent on the promoter getting funds from the bank. The telecom industry is of the opinion that with the reduction in the cost of licence fee, the banks will be more willing to lend.
The revenue sharing plan seems to have catalysed the funding plan of the pending telecom projects. It has also reduced the financial burden on telecom operators while giving them an opportunity to go ahead with their investment plans.
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