The Tata Group company has mandated both SBICAP and Industrial Development Bank of India to arrange the debt component, which is almost 50 per cent of the total investment of the project.

SBICAP expects the project to achieve financial closure this financial year and the network built up in the state would be as per the projections of the company. The project has already garnered approvals from domestic commercial banks and financial institutions to the tune of Rs 700 crore and many more banks and financial institutions have expressed interest in the project and are ready to take an exposure in this Tata Project.

Despite the fact that there will be initial cash losses and huge capital expenditure that a telecommunication project typically incurs, the strength of the promoters, the business potential in the state and strategic presentation by SBICAP have been able to rope in several investors for the project.It is expected that the syndication may well be in excess of the requirements and the efforts are directed towards lowering the cost of funds for the company.

TTL had signed a license agreement with the Government of India in November 1997, which stands revised for a period of 20 years after the introduction of the New Telecom Policy 1999.

TTL, in its business plan has targetted to cover the state in a phased manner and its network is already operational in the cities of Hyderabad and Vijaywada, where it has more than 48,000 subscribers. On achieving financial closure, the company expects to accelerate its network roll-out in the state. Based on a conservative approach, the company expects to achieve approximately one-third of the Andhra Pradesh telecom market share.