The company has also decided to make Shyam International Pvt Ltd a subsidiary of STL. The subsidiary will invest in various joint ventures.
STL's investment of Rs 200 crore in Hexacom India Ltd, a cellular service provider which has 90 per cent market share in Rajasthan, will be made through Shyam International Pvt Ltd.
The company will follow the same path of investing through its subsidiary in investing Rs 150 crore in Shyam Telelink Ltd, yet another subsidiary of STL, which is a licensee to provide basic telephone services in Rajasthan.
More From This Section
While Hexacom is providing service in Rajasthan under the Oasis brand, Shyam Telelink is offering its service under the Rainbow brand.
STL is planning an investment of Rs 1,000 crore in a phased manner in the services of Shyam Telelink in Rajasthan. It aims to lay a optic fibre backbone of nearly 4,000 kilometres.
In the first five years, the company aims to connect 63 towns in Rajasthan. The technology partner for the project is Lucent Technologies, one of the largest telecom equipment suppliers in the world.
The company intends to increase its product suite by adding a number of hi-tech products. It plans to sell and service satellite phones for which it has entered into an exclusive arrangement with Shyam ACeS (India) Pvt Ltd.
The company also intends to exploit the opportunities emanating from the power distribution sector. The company has installed remote load management systems for the Rajasthan State Electricity Board (RSEB). It will soon be installing and testing remote energy metering systems for the Delhi Vidyut Board as well.
Meanwhile, in order to raise funds for its expansion and service enhancement, the company has decided to increase its authorised capital, and borrowing limit.
STL's authorised capital is being raised from Rs 50 crore to Rs 75 crore, while the borrowing limit is being increased from Rs 250 crore to Rs 500 crore.