NEW DELHI: The
Cabinet on Wednesday approved setting up of a US subsidiary of the state-run telecom consultancy company
TCIL for providing techno-commercial and logistic support for three
Google projects for America.
TCIL is one of the few companies, which have been roped in to execute “Google Fiber”, Google’s “Fiber-tothe-Premises Project” in the US for providing high capacity broadband internet and cable television to all the cities.
In an official release, the government said the newlyformed subsidiary is expected to earn profit of around 10% in the initial years with turnover of $10 million, and the number may rise depending upon the volume of work. This will also help the company in business expansion and increasing turnover and profits, ultimately resulting in increased dividend to the government, the release added.
“Total investment of $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 $5 million for getting finances in US for expansion of business,” the government said.
The Mini Ratna company has executed projects in more than 70 countries in the domain of telecommunications and information technology.
