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Monday, July 20, 1998

India Telecom may come under Companies Act

P S Ameer  
New Delhi, July 19: The proposed corporate, India Telecom, of the Department of Telecommunications (DoT) is likely to be registered as a corporate entity under the Companies Act, 1956, with provisions for disinvestment, highly placed government sources said.

Incorporating the company under the act, will impart India Telecom with much-needed flexibility to raise resources including valuable foreign exchange through Global Depository Receipts (GDR), said a draft note prepared by DoT for the cabinet, the sources said. The note also explains details of the statutory model which can come through an act of parliament. However, this has been discounted by DoT, which said it will not allow India Telecom, without further amendments in the original act, sources said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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