Indian fixed line and broadband operator Tata Communications (formerly VSNL) is planning to raise up to INR30 billion (USD605 million) through a combination of debt financing and a rights issue. According to local news sources the operator has approached the Indian government, which holds a 26% stake in the company, regarding the rights issue, which is expected to raise up to INR10 billion. The operator has been attempting to raise equity since early 2008, although the state has not approved any of the company’s previous proposals. It is understood that Tata Communications will use the funds raised to pursue acquisitions in both the US and the UK as part of its submarine cable projects. Additionally, Tata is expected to bid for Indian WiMAX spectrum when it is finally auctioned in the first half of 2009.