The Department of Telecommunications (DoT) has asked the Telecommunications Consultants India Limited (TCIL) to reconsider the proposal to exit Bharti Hexacom, its joint venture with the Bharti Group in Rajasthan, as it has not received any dividend, despite Hexacom making profits since 2009-10.
Bharti Hexacom, a joint venture between Bharti airtel and TCIL, offers mobile services in Rajasthan. Bharti holds a 70 per cent stake in the joint venture and the remaining 30 per cent is held by TCIL.
The company also offers mobile services in six northeastern states (excluding Assam) and has over 15 million customers.
Prior to this, TCIL had asked the Bharti Group for payment of a dividend. However, the Bharti Group did not agree to this, on grounds that Bharti Hexacom had been using internally generated resources to expand its networks to keep pace with competition.
TCIL had also suggested listing Bharti Hexacom. The Bharti Group rejected this offer as well, on grounds that their flagship company, Bharti airtel, was already listed.
TCIL neither received any return on its investment of Rs 1.06 billion, nor did it have an effective say in the company.
It is believed that Bharti airtel has agreed to give TCIL a dividend this year at the rate of 20 per cent or equivalent to the amount it would give to its shareholders.
