Tamilnadu Telecommunications Limited (TTL) joint venture partners are planning to meet on January 19 to discuss and decide the future of the Company. The development comes on the back drop of Telecommunications Consultants India Limited (TCIL), which holds 49 per cent stake in the company, has said it will not be in a position to support TTL anymore.
TTL is a sick Company under BIFR and a Sanctioned Scheme was issued by BIFR during July, 2010. The cutoff date for settlement with the banks was March 31, 2007. Since then there is no banking operation and as per the Sanctioned Scheme settlements made with the Banks during 2010-11.
TTL is an OFC manufacturing Company for telecommunications. Though the projections made in the Sanctioned Scheme were achievable and as per the OFC market data, due to various reasons the big projects of Government got delayed, according to TTL, noting one such project is the National Optic Fiber Network (NOFN) project of Government to cover the villages with Broad band.
Due to dull phase of market the Company’s capacity utilisation for the past few years were less than 25 per cent, though the OFC requirement is huge in the Country, due to above said delays the projects are not implemented in time. This has resulted in continuous accumulation of loss year after year.
“For the past more than six years Telecommunications Consultants India Limited (TCIL), a Government of India Enterprise, one of the promoters having 49 per cent stake in TTL is financially supporting the Company. Due to low level of capacity utilization, the exposure of TCIL in TTL is continuously increasing, which has reached a stage that TCIL is also not in a position to continue the support,” said the company in an announcement.
It was further stated the Promoters / JV Partners meeting has been proposed on January 19, 2015 in Chennai, to discuss and decide the future of the Company.