In a time when majority of the corporates are wrestling the global credit crunch to  raise funds our very own Indian telecom majors are adapting novel strategies. Idea cellular, a Aditya Birla Group company, is juxtaposing rupee debt and foreign currency to raise Rs 6000 crore. The larger portion of the funds would be diverted toward strengthening operations in current circles and roll-outs in newer circles over the next two years.

The plan is to raise credit from export-credit agencies in China, Sweden and Finland. Idea has an advantage as export-credit agencies offer loans at lower rate to companies placing bulk orders with vendors in their respective countries. Idea has been buying from Chinese majors ZTE and Huwaei (the latter being a major supplier in Idea’s 5-circle rollout); plus they have been buying equipment from Swedish Ericsson and Finnish Nokia Siemens Network.

In fact the fifth-largest mobile service provider is negotiating for rupee-borrowings with bankers.

On the other hand the Essar Group has transferred a 10.97% stake from Essar Teleholdings (its telecom arm) to ETHL Communications Holdings (a new entity). The Group had to rejig its share holdings with Vodafone Essar to raise $1.2 billion which would be diverted to expansion plans.