Russian Govt To Invest $686 Mn in Sistema Shyam Teleservices

19 March, 2009

The Russian government is buying a 20% stake in Shyam-Sistema telecom joint venture for a little over $680 million (Rs 3,432 crore). The company is issuing additional shares to the Russian government. The deal would value Sistema Shyam Teleservices at $17.160 crore, reports Economic Times.

Shyam-Sistema was among the nine firms that got telecom license last year and offers mobile services under the ‘Rainbow’ brand in Rajasthan. The additional funding will certainly help the company expand its operations in the country.

The deal is part of India’s debt settlement scheme with Russia, where the country owes $1 billion. India owes money to Russia for products bought prior to Soviet Union’s collapse which is parked in a rupee account with the Reserve Bank of India (RBI). Russian government or companies can utilise this to finance its investments and joint venture (JV) projects in India.

Shyam-Sistema is planning to launch its services in Tamil Nadu, Chennai, Karnataka, West Bengal and Kolkata soon. It has already signed a deal for tower infrastructure with Tata-Quippo combine. Sistema has invested $1 billion in Shyam and plans invest another $1.5 billion in next couple of years. It plans to launch the pan-India services on the CDMA platform. The joint venture aims to have more than 35 million subscribers by 2012.

In another development,  Shyam-Sistema has taken 30,000 sq.ft. sapce on long-term lease at Kolkata’s telecom complex  PS-Srijan Tech Park.


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1 Comment
gbolahan . 5 years ago

i will like to know how the govt is going and the entire country in between the russian govt and indian govt.And i will like ti invest in the russian govt account will that be okay with the govt at all.Is this comment accepted by the govt.I will be glad if you can accept my offer

Russian Govt To Invest $686 Mn in Sistema Shyam Teleservices

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