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|November 21, 1997||
DSS Mobile fails to raise funds for pager projectThe international finance community's reservations about the future of Indian paging industry has disturbed the plan of DSS Mobile Communication Limited to raise $40 million in the overseas market.
The company had started the process of raising these funds in June this year through a combination of private placement of equity and debt.
However, according to sources, the company has not been able to make its financial closure yet.
Kumar also agreed that the company may go in for a partial closure right now and the balance funds could be raised later as and when required.
"Despite facing difficulties, the process is still on and the company has also signed MoUs with some of the foreign investors,'' he said.
"The Department of Telecommunication has been assuring the industry that it will take a final decision on such issues but no formal order has been passed yet. This has resulted in uncertainty and a feeling of apprehension among foreign investors about the future of the industry,'' said Kumar.
The issues include reducing customs duty on pagers, declaring the paging industry as an infrastructure sector, allowing assignability, providing free junction lines and allowing VSAT connectivity.
All these issues, which are being raised for a long time and have also been acknowledged by the Department of Telecommunications, are still hanging fire, said Kumar, adding that there has not been a single formal order issued by the department despite promises.
Almost all paging companies need funds for financing their expansion plans but the unfavourable outlook of foreign investors is holding them back to go to the international market, said Kumar.
DSS Mobile is a Sanjay Dalmia group company and has licences for operating paging services in 10 cities - Delhi, Bangalore, Bombay, Calcutta, Ahmedabad, Pune, Madras, Hyderabad, Kanpur and Lucknow.
- Compiled from the Indian media
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