New Delhi: Scrapping its plan to exit from Bharti Hexacom Ltd (BHL), a subsidiary of Bharti Airtel, the Telecommunications Consultant of India Ltd (TCIL) has decided to stay with the company owning its 30 percent stake. 

Looking at the better prospects in the telecom sector and expecting a rise in company’s profit, TCIL has decided to stay in the joint venture, Bharti Hexacom Ltd (BHL).
In 1995, Bharti Airtel and TCIL together established BHL in which TCIL owns 30 per cent stake, while the balance is with Bharti Airtel.

According to TCIL, Bharti Airtel has not paid any dividends since its inception.

BHL is expected to make a profit of about Rs. 650 crore in 2010-11. However, in 2009-10 the company reported a net profit of Rs 700 crore.

Considering the objections raised over the company's financial performance and other issues, the Cabinet Secretariat has sought information from the Ministry of Communication in regards to the disinvestment issue. The decision of disinvestment of TCIL in Bharti Hexacom will be reconsidered after this.

The decision to stay invested in Bharti Hexacom was taken by TCIL's board of directors and has been communicated to the Department of Telecom. However, the company's disinvestment committee had earlier advised a move against the disinvestment.

JPN/Bureau