Joint Ventures

In the year 1995, BHL was formed in association with Mobile Telecommunications Company, Kuwait and Shyam Telecom Limited to operate cellular mobile services in Rajasthan and North East Region. At present, TCIL and Bharti Airtel Limited (BAL) are holding shares in the ratio of 30:70 in BHL. TCIL has made an investment of Rs.1062 Million in BHL in a phased manner. The Company achieved a total income of Rs. 67,192 Million and profit after tax of Rs. 5,492 Million during the year as compared to Rs. 54,940 Million and loss after tax of Rs. 16,746 Million in the last year. As per the directions of Administrative Ministry, the proposal for disinvestment of 30% stake of the company in BHL through IPO mode in Single Tranche at average valuation of Rs. 95,300 Million was recommended by the Board of Directors and sent to DOT for approval. DIPAM has given its approval for disinvestment of TCIL's 30% stake in BHL through IPO process vide its letter dated 17.08.2023. BHL has already initiated the IPO process in co-ordination with TCIL.

TBL was formed in 1989, with TCIL holding 44.9%, TBL India LLC holding 40% and DSS Enterprises holding 15.1% shares in the Company. TCIL had invested a sum of Rs. 8.37 Million in the Company. During the year 2022-23, TBL executed a project for supply of IT Hardware and Software. The Company achieved total income of Rs. 19 Million and a profit after tax of Rs. 0.2 Million during the year as compared to Rs. 9 Million total income and Rs. 0.8 Million profit and loss after tax in the previous year. In line with the advice of the administrative ministry, the valuation of TCIL’s stake in TBL was done and the other shareholders were offered the shares of TCIL in TBL at the valuation approved by the Board of Directors of TCIL. Response is awaited.

The company was promoted in 1987 with Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) as the major stake-holder to take up projects for supply of technical manpower and execution of training, computer communications and office automation projects. TCIL had made an investment of Rs.3.60 Million in ICSIL. ICSIL is an IS/ISO 9001:2008 certified company and is executing projects in the area of supplying manpower, hardware and other computer peripherals to Delhi government and to various other government departments. The Company is also executing high tech projects in networking and software, CCTV projects and also running Training Institutes for numerous Computer and IT Courses. The total income of the Company during the year 2022-23 was Rs. 1728 Million as compared to Rs. 1677 Million in the last year. The profit after tax in 2022-23 was Rs. 69 Million as compared to Rs. 58.4 Million in the previous year. Keeping in view the advice of the Administrative Ministry to exit from subsidiaries / JVs, the valuation of the shares of ICSIL was done which was approved by the Board of Directors of TCIL. The approval from DOT is awaited for exit from ICSIL.

UTL was formed in 2001, with TCIL, MTNL, VSNL (Presently Tata Communications Ltd.) and a local partner viz. Nepal Ventures Pvt. Ltd. to provide WLL based telecom services in the Kingdom of Nepal. The company provides basic mobile, NLD, ILD and Data Services in Nepal. The company has not been performing well for the last few years and incurring huge losses. It is not paying the statutory dues like Royalty, BTS site charges, and other dues to the Govt. of Nepal. All the Indian JV Partners have decided to exit from the JV and have exercised their Right to exit. During the year ending March 31, 2023, the turnover of the company was NIL as the company is not in operation. Various meetings were held among the Indian JV partners to pursue the repatriation of funds from UTL in pursuance to the exercise of right to exit. TCIL is currently considering taking legal recourse to establish its rights for exit.

Subsidiaries

TTL was established in the year 1988 in association with Tamilnadu Industrial Development Corporation (TIDCO) and M/s Fujikura of Japan for manufacture of Telecom Cable. TCIL’s stake in TTL is 49%. The performance of the company has been deploring over the past few years due to paucity of orders. The present demand is mostly for Ribbon-Type cables for which TTL does not have the requisite manufacturing machinery. Considering the same, TTL is trying to explore options for monetization of TTL Land to meet its expenses. During the year 2022-23, the operating turnover in ‘Nil’ as against ‘Nil’ turnover in previous year. The loss after tax incurred during the financial year under review is Rs. 120 Million as compared to loss after tax of Rs. 104 Million in the past year. Simultaneously, as per the advice from the Administrative Ministry, the process of disinvestment of TCIL’s stake in the subsidiary has been initiated.

TCIL Bina Toll Road Limited (TBRTL) was incorporated on 11.07.2012 as a wholly owned subsidiary of Telecommunications Consultants India Ltd (TCIL) with the object of execution of Bina-Kurwai-Saronj Toll Road Project on design, build, finance, operate and transfer (DBFOT) basis. The Project was completed in 2014 and toll collection started in April, 2014. The turnover of the Company during the financial year 2022-23 was Rs. 41 Million as compared to Rs. 36 Million in the past year. The profit after Tax during the year was Rs. 25 Million as compared to Profit after Tax of Rs. 1 Million in the previous year. The profit in this subsidiary is only book profit due to de-recognition of TCIL loan as per provisions of IND AS. Due to mounting losses and mandate from DOT for closure of this subsidiary, the matter was examined at the Board level and it was decided that TBTRL may proceed for termination of the Concessionaire Agreement with MPRDC and claim the termination payment as per agreement. DIPAM has given its approval for closure of TBTRL vide its letter(s) dated 17.08.2023, which were forwarded to TCIL by DOT on 18.08.2023 . TCIL management is examining TBTRL matter before taking further steps.

TCIL Lakhnadone Toll Road Limited (TLTRL) was formed on 21.08.2013 as a wholly owned subsidiary by TCIL for construction of Lakhnadone-Ghansore Road Project on Build, Operate and Transfer (BOT) Model. The Project was completed on 29.06.2016 and the toll collection started w.e.f. 06.07.2016. The total income of the Company during the year 2022-23 was Rs. 32 Million as compared to Rs. 34 Million in the last year. The loss after Tax during the year was Rs. 11 Million as compared to loss after Tax of Rs. 52 Million in the previous year. Due to mounting losses and mandate from DOT for closure of this subsidiary, the matter was examined at the Board level and it was decided that TLTRL may proceed for termination of the Concessionaire Agreement with MPRDC and claim the termination payment as per the agreement. In-principle approval dated 10.07.2023 from DIPAM was received on 11.07.2023 from DOT for the closure of this subsidiary company. TCIL has issued termination notice to MPRDC on 04.09.2023 for closure of TLTRL through default route.

In this subsidiary, TCIL’s equity stake is 70% and the remaining 30% shares are held by M/s National Telephone Services Company LLC & Oman (NTS). The company was not getting much business in Sultanate of Oman during the last few years and hence, the process of closure was initiated and since closed.

TCIL USA Inc. was incorporated as a wholly-owned subsidiary of TCIL in the state of Washington, USA on 29.11.2018 with sanctioned investment amount of USD 5 million. Efforts were made by TCIL USA Inc., for seeking business in USA, however, even after lots of efforts, TCIL USA Inc. could not procure any business in USA. Pursuant to Cabinet approval for closure of TCIL USA Inc., capital was repatriated in view of the planned closure and the same was adjusted with investments. A loss of Rs. 25.651 Million has been booked in the financial statement of the financial year 2022-23. Equity infusion will be made afresh after exploring possible business opportunities as per Govt. of India directions.