VSNL to invest US$ 200 mn in S Africa venture 'Neotel'

Mumbai, Sept 13 (UNI) Tatas owned telecoms service company, Videsh Sanchar Nigam Ltd (VSNL) is set to invest up to US0 million in its South African venture, Neotel, over the next three years.

Speaking to newsmen after the company's AGM here today, VSNL Chairman Subodh Bhargava said the Board approval for the investment has been obtained. ''The initial investment would be around -0 million, but this could go up to 0 million,'' he added.

The bulk of the money earmarked for investment will be spent in this fiscal, Executive Director N Srinath told the media after the meeting.

Replying to a question, Mr Bhargava said VSNL will also stop further investments in group company Tata Teleservices Ltd. He said VSNL's resources will be directed towards its overseas acquisitions such as Tyco International's under-sea fibre optic cable unit and Teleglobe International Holdings Ltd.

''The resources have to be conserved for investments there,'' he said, adding that the management had decided that Tata Teleservices would have to find alternate sources of funding. VSNL will soon be rolling out a wireless standard in India which would substantially increase its broadband speed and reduce prices, according to him.

VSNL's total investment in Tata Teleservice's equity stood at Rs 1011 crore, with its holding at 14.14 percent, as on March 31, 2006.

UNI SN PM AG2005