In these turbulent times, where biggies like Vodafone are crying foul over delaying the bidding process, given the liquidity crunch, funding assistance is a much welcomed move. This comes at a stage where operators are in urgent need of funds to get themselves an edge over competitors in their bid for 3G spectrum. The Finance ministry has permitted IIFCL – India Infrastructure Finance Company to lend funds to the telcos who are all set to enter the 3G auction, due soon.
This move will help fund the process of bidding for the much awaited 3G spectrum. However, it is much appreciated, given the timing of the move, where companies didn’t have much access to funds to such a large extent. The funding is to the tune of Rs.10,000 crore, which the Company would raise through tax-free bonds from the public and local financial institutions.