The government today approved the formation of a wholly owned subsidiary company of Telecommunications Consultants India Ltd (TCIL) in the US for ICT related work.
The Cabinet nod includes TCIL's equity investment of USD 5 million in the proposed company, in a phased manner, an official statement said, announcing the approval for "formation of 100 per cent owned C Corporation of Telecommunications Consultants India Ltd (TCIL) in USA".
The newly-formed subsidiary is expected to earn profit of around 10 per cent in the initial years with turnover of USD 10 million, and the number may rise depending upon the volume of work.
Its formation will help the state-owned TCIL in business expansion and increasing turnover and profits, ultimately resulting in increased dividend to the government, the release added.
"Total investment of USD 5 million will be made by TCIL in the form of equity from its internal resources. TCIL may also be required to provide counter guarantees of around USD 5 million for getting finances in US for expansion of business...," the release said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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