The government proposes to set up a Telecom Finance Corporation (TFC) in the 12th Five Year Plan period (2012-17) which will be registered as a non-banking and non-deposit infrastructure finance company.
“It would be registered as non-banking finance company and non-deposit infrastructure finance company. The Telecom Finance Corporation would be a public sector unit under the administrative control of Department of Telecom,” Communications and IT Minister Ravi Shankar Prasad said in a written reply to the Lok Sabha.
He added the time frame to set up proposed TFC is up to March 31, 2017, that is within 12th five year plan.
Prasad said the main sources of funds for TFC shall be through issue of taxable and tax-free bonds.
The other source of funds include term loans from banks/financial institutions and off-shore borrowings and borrowings from multilateral agencies such as Asian Development Bank, International Monetary Fund, World Bank and other sovereign funds.