"Board of directors of VSNL has decided to pick up 10 to 20 per cent equity in the ASC project, while Lockheed Martin which is building the satellite for the project, has also indicated that it will be interested in investment," Dr K Narayanan, executive vice president of ASC Enterprises told PTI here. VSNL's decision to invest in the ASC projects is in tune with an earlier decision of the board to pick up upto 20 % equity in all global mobile personal communication services (GMPCS) projects in the country. It had already picked up equity in iridium and ico projects. Narayanan said the investment of Lockheed Martin in the Rs 3400 crore project would depend on the cost of the satellite. Lockheed Martin's satellite building cost may be taken as its investmentin the project.

Industrial Financial Corporation of India would lend Rs 500 crore for the project, the financial closure of which is expected this year. ASC is also considering the option of an initial public offering and also talking to financial institutions. ASC's satellite phone services would be available by 2001, soon after the launch of the satellite named "Agrani', in the first quarter of the year, he said.

He said no launcher had been finalised for the satellite, although the payload was being designed to be compatible with French airline and American proton rockets. ASC would buy the launching slot booked by commercial agency to put the satellite in orbit in time.Handsets for the satellite phone service is being developed by the Lockheed Martin Federal Systems, a subsidiary of Lockheed Martin.