Troubled optical fibre maker Tamil Nadu Telecommunications will hold a meeting of its promoters on January 19 to decide on the future of the company.
Tamil Nadu Telecommunications is a joint venture of Telecommunications Consultants India, Tamil Nadu Industrial Development Corporation, and Fujikura Ltd (Japan).
"Tamil Nadu Telecommunications Limited (TTL) is a sick Company under BIFR and a Sanctioned Scheme was issued by BIFR in July, 2010. Though the projections made were achievable, due to various reasons the big projects of Government got delayed," the company said in a statement.
As the company's total capacity utilisation was less than 25 per cent it was not able to take up the government's project to cover all the villages under broadband, it said.
Though the optical fibre cable requirement is huge in the country, due to delays the projects were not implemented on time. It resulted in continuous accumulation of loss year after year for the company, it said.
Telecommunications Consultants of India holds 49 per cent stake in the company and was supporting Tamil Nadu Telecommunications for more than six years. But due to low level of capacity utilisation, Telecommunications Consultants of India said it was not in a position to offer its support to Tamil Nadu Telecommunications Ltd, it said.
"In view of the above, the promoters and joint venture partners meeting has been proposed on January 19, to discuss and decide the future of the Company", it said.
TTL embarked upon diversification of its products with manufacturing of optical fibre cables, in technical collaboration with Fujikura Limited of Japan. The manufacturing plant is located at Maraimalai Nagar near Chennai, it said.
