NEW DELHI, OCT 5: The Telecom Commission has deferred a decision on the Hughes Ispat request for floating two independent subsidiaries to operate basic services in Karnataka and Maharashtra.

The Commission which had earlier rejected the Hughes Ispat request has at its meeting on October 3, agreed to review the whole matter afresh in the context of the consortium signing up the licence agreement for the Maharashtra circle. The decision to review the whole matter was taken on the assumption that for operational and financial reasons the floating of two separate companies might become inevitable for the group.

Sources say that there was no unanimity on the issue as some members felt that allowing changes in the terms of licence at this stage will open a pandora's box. There are other requests also pending with the Commission for change of partners and company holdings.

As per tender conditions, licence was not transferable to a third party directly or indirectly. Any change in the composition of the licensee shall be with the prior approval of the DoT.

Licensor, (here DoT) while approving such changes in the equity structure has to ensure that no one company or legal person was controlling interest in more than one Indian companies which have been licenced to provide the service, these sources point out.

The telecom panel decision to review the matter afresh is significant in the new context. The Commission is eager to make as many licence holders sign the agreement and start basic service operations in their respective circle.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.