Cellular major Birla Tata AT&T (BTAL) is close to tying up its Rs 1,800 crore syndicated loan by the end of March 2002. The company is raising loans to replace its high cost debt of Rs 1,200 crore and part finance its expansions.
BTAL is expected to get an in-principle approval from all leading institutions by March-end, and documentation of the loan will be done before June. Banks and institutions, including IDBI, have already committed funds of Rs 900 crore in this regard. The debt restructuring is expected to help the cellular company save huge funds since institutions are in favour of reducing interest rate.
The company has already fixed its capital expenditure plan at Rs 700-800 crore for its existing four circles - Madhya Pradesh, Maharashtra, Andhra Pradesh and Chattisgarh and an additional Rs 300-400 crore for its Delhi circle, where cellular services will be launched in the next 3-4 months.
