In a bid to exploit the immense potential in the telecom sector, Tata Electric Companies (TEC), India's largest private power utility, has lined up plans to invest Rs 3 bn in telecom over the next 3 years. Internet services is another area that has got TEC drooling.
At the company's AGM, Ratan Tata, TEC Chairman commented, 'It would be worthwhile to be an investor with long term perspective in the telecom sector.' Senior officials refused to concede that the investment is a diversification. Ratan Tata explained, 'We already have a significant investment in Tata Telecom services, primarily in basic services. We are also exploring in the option of Internet services as an option for the future.'
Technically speaking TEC is not a company, but an entity created by an agreement of 3 underlying companies - Tata Power, Andhra Valley and Tata Hydro. Most of the assets are owned jointly, while revenues and expenditure are shared in the ratio of 5:3:2.
TEC's growth is a matter of concern, given the fact that its licence area has not increased. The company is now pushing aggressively for IPP (Independent Power Projects)
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