ICICI's stake in Spectranet.
Punj Lloyd plans to invest Rs 2,000 cr ($435 mil) in cable net
Feb.16,00
Pioneer News Service/New Delhi
(Punj Lloyd is planning to foray into cable network by launching its internet service and may go for Nasdaq listing.)
The company holding a class A internet service provider (ISP) licence on Wednesday announced its plans to invest Rs 2,000 crore over a period of three years in laying internet infrastructure.
It expects its gateway proposal to be cleared in the next round of meeting with the department of telecommunication. Presently, seven companies have received their licence clearance from DoT.
It has tied up with eight cable operators in Delhi to provide internet facility up to 1.5 mbps at a flat monthly rate. Value added services such as internet radio, video streaming and interactive games would be available in addition to internet browsing on TV itself.
Chairman Spectranet Atul Punj told The Pioneer that the company is now looking for all possible diversifications.
Punj Lloyd has set up the company with Rs 20 crore paid-up capital. It will lay fibre optic cable infrastructure besides delivering a range of internet access and multimedia services in 40 cities.
"We will offer exclusive convergence infrastructure, direct mail access for faster connectivity and facilitate basic internet and value added services like telemedicine, tele-education and e-governance on wahindia.com the company's site.
Spectranet has already invested Rs 100 crore in covering nearly 170 kms in Delhi. Its services would be launched here from April. However, he did not point out on how Rs 2,000 crore would be raised to provide its promised services in 40 cities.
"Funds are no problem. We will opt for debt and equity route to meet our resources," he added.
According to Mr Punj, the company may go for an initial public offering (IPO).It may be recalled that the government has recently cleared the route for raising money from ADR and GDR.
ICICI Ltd has given a line of credit of an undisclosed amount and has taken a small stake in Spectranet. We expect to breakeven by 2003, Uday Punj, managing director, Spectranet said.
Punj Lloyd which has set up Spectranet in 1995 has booking orders worth Rs 1,000 crore executable over 18 months. |
