NEW DELHI, June 14; A move by the RPG Satellite Communications to replace its Indian promoter has been stalled by the Foreign Investment Promotion Board (FIPB).RPG Satellite holds the licence for operating closed users group 64 Kbps domestic data network through Insat satellite system (V-SAT) service.The licence was originally granted to RPG Telecom Limited.The FIPB rejected the proposal on the request of the communications ministry. The Department of Telecommunications had raised certain objections to the proposal on the grounds that the licence agreement did not provide for a change in the Indian partner.The company, moving a fresh application dated May 25, 1997, informed the FIPB that its trying to convince the DoT on the need for changing the Indian partner. RPG Satellite, in its fresh application to the FIPB, had indicated that certain modifications needed to be made in the original application and that it could be possible after negotiations with the DoT.DoT sources say that as part of the terms and conditions of the licence, transfer or assignment of licence to a third party was prohibited. However, an administrative decision was taken to transfer the licence from RPG Telecom Limited to its subsidiary company RPG Satellite Communications Limited, on signing of a tripartite agreement.The DoT had raised objection to the fact that in the new proposal the company had indicated its Indian promoter as RPG Telecom Limited. This change-over did not have the sanction from the DoT, it was pointed out.d ¬Ut›t?¼Tt›lways on capital-at charge and investment from Capital Fund.The RBI study says that the current wide gap beween returns earned and interest paid on market loans has a cascading effect on railway finances to the extent that this adds to the net working expenses and cuts into the appropriation to developmental funds for investment.``The structural weaknesses of the Railways are manifest in the high operating ratio,'' the RBI study said. Between 1993-94 and 1996-97, the operating ratio had grown by 3.4 percentage points. The working expenses grew at a faster rate than the gross traffic receipts stemming mainly from the annual average growth in ordinary working expenses by 11.2 percent during this period.This trend needs to be reversed if the Railways have to strengthen their financial health and generate adequate internal resources for finacing the growing investment needs in this critical infrastructure sector, according to the RBI study.
