rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » BSNL orders manna for equipment companies

BSNL orders manna for equipment companies

September 08, 2003 10:31 IST

Telecommunication equipment manufacturers are set to benefit from the Rs 3,500 crore (Rs 35 billion) financial package approved by the government for Bharat Sanchar Nigam Ltd. A substantial portion of the package will go towards rolling out new projects.

HFCL is said to have received orders worth Rs 450 crore (Rs 4.50 billion) from BSNL, which are to be completed over the next one year.

A company executive said HFCL has received orders for Rs 450 crore already and is expecting confirmation soon for further orders of Rs 250 crore (Rs 2.50 billion) to be filled in the near future.

The order is for switching equipment, CDMA handsets and maintenance of turnkey projects.

Surana Telecom had earlier received an advance purchase order of almost Rs 42 crore (Rs 420 million) for the supply of CDMA handsets which is to be delivered within six months from issue of the purchase order.

Earlier, Prithipal Singh, chairman and managing director, BSNL had said that with the financial package being approved, the company will be able to roll out their network as per plan.

He added that the company will be able to meet the requirement of putting up village phones and also expand its network in the rural sector.

The government has approved a Rs 3,500 crore financial package for BSNL, this includes reimbursement of licence fees and spectrum charges for 2003-04 and an extension of the moratorium on paying the principal and interest on a Rs 7,500 crore (Rs 75 billion) loan by a year to March 31, 2005.

Nikhil Lohade in Mumbai