3G bidders may get access to IIFCL funds

10 Dec 2008

India’s Economic Times is reporting that overseas telcos looking to participate in the upcoming 3G auctions may be able to borrow money for their bids from state-owned India Infrastructure Finance Company (IIFCL). The move comes amid concerns that foreign buyers may not participate in the auction due to the poor economic worldwide climate. Norwegian telecoms group Telenor, which recently acquired a 60% stake in cellco Unitech Wireless, has already stated it does not intend to bid. The IIFCL has been granted permission to raise INR100 billion (USD2.10 billion) through tax-free bonds from the public and financial institutions in order to meet any demand from companies looking to bid.