ABSTRACT

Information Technology - Establishment of Community Internet Access Centre in Tamil Nadu - Joint venture agreement entered into by ELCOT  with Tvl.Worldel Mauritius Ltd - Termination - Accepted.

           INFORMATION TECHNOLOGY DEPARTMENT

G.O.Ms. No.24                                                                                           Dated: 6th November 2001

Read:

    1) G.O.Ms.No.6, Information Technology, dated 10.3.99
    2) Government Letter(Ms)No.22, Information Technology, dated 5.7.99.
    3) Government Letter (Ms0No.37, Information Technology, dated 10.11.99.
    4) G.O.Ms.No.5, Information Technology, dated 28.2.2000.
    5) From the Managing Director, ELCOT, letter No.Elcot/WorldTel/Secl/728/99, Dated 9.7.2001.

                                                    --------

ORDER:

        In the G.O. first read above, the Government have permitted Electronics Corporation of Tamil Nadu Ltd (ELCOT) to enter into a joint venture agreement with Tvl. WorldTel, United Kingdom to set up a modern Optic Fibre based communication backbone in the State and to promote 13,000 Community Internet Access centres in the State.  In the G.O.second read above, the Government have approved the draft agreement entered into by ELCOT  with Tvl.  WorldTel Mauritius Limited (WTML), a company set up by Tvl. WorldTel, U.K. for this purpose and the same has been signed by them on 5.7.99.

2.    WTML had suggested to the Government that they proposed to induct Tvl.Reliance Strategic Investment Private Ltd, a company of the Reliance group, as their local partner in India and the same was approved by the Government in the G.O. third read above.  Finally, a company was incorporated at Chennai called WorldTel Tamil Nadu Private Ltd (WTPL).  In the G.O. fourth read above, the Government have permitted WTPL to use public right of way in Tamil Nadu to lay Optic Fibre Cables to create the backbone for its project on a non-exclusive basis.

3.    WTPL have not taken any effective project implementation steps like creation of Corporate office at Chennai, did not set up a proper Board of Directors, never finalised its "share subscription agreement" with ELCOT, never sought any funds from ELCOT as equity contribution and never used the public right of way permission given by the Government.  Tvl., WTML has in their letter dated 28.6.2001 requested ELCOT to terminate the joint venture agreement by mutual consent.

4.    The Managing Director, ELCOT has requested the approval of the Government for the termination of the Joint venture agreement .  Legal opinion obtained by ELCOT supports the termination of the Joint venture agreement on mutual consent terms, subject to the condition that the letter of termination shall also mention that there are no claims whatsoever against the parties to the joint venture and that both parties have no liability whatesoever againt each other.

5.    The Government, after careful consideration approve the proposal of ELCOT to terminate the joint venture agreement entered between TVL.WorldTel Mauritius Ltd and ELCOT on mutual acceptance terms as per clause 13 of the agreement, subject to the condition that while accepting the termination on mutual consent terms, the letter of termination shall also mention that there are no claims whatsoever against the parties to the joint venture and the both parties have no liability whatsoever against each other.

6.    This order issued with the concurrence of the Finance department - vide its U.O.No.2122/FS/P/2001-2, dated 9.8.2001.

(BY ORDER OF THE GOVERNOR)

D. PRAKASH,
Secretary to Government.

To

The Managing Director , Electronic Corporation of Tamil Nadu Ltd., Chennai-35.
Copy to: Finance (BPE) Deptt.
Copy to Chief Minister's Office.
SF.       

                    FORWARDED: BY ORDER

                                        Section Officer.