DEPARTMENT OF TELECOMMUNICATIONS
Sanchar Bhawan, 20 Ashok Road
New Delhi
DISCLAIMER
This request for Expression of Interest (EOI) is not an offer by the Department of Telecom, India, but
an invitation to receive responses from eligible interested firms for providing project consultancy on
“Detailed Project Report on setting up of Telecom Finance Corporation”.
No contractual obligation whatsoever shall arise from the EOI process unless and until a formal
contract is signed and executed between Department of Telecom, India and the bidder(s) concerned.
Department of Telecom, India reserves the right not to proceed with the project.
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SCHEDULE FOR SUBMISSION
Event
Date & Time
Availability of EOI Document on DoT 09-12-2013 (1100 hrs) to 09-01-2014 (up
Website
to 1500 hrs) IST
Last date and time for submission of 09-01-2014 up to 1500 hrs (IST)
completed EOI document
Opening of EOI
09-01-2014 at 1600 hrs (IST)
The EOI document can be downloaded from the website: www.dot.gov.in
Alternatively, the
document can also be obtained in person from Shri Vinod Kumar, ADG (Plan), 10th Floor, Room No.
1009, 20 Ashoka Road, Sanchar Bhawan, New Delhi-110 001 on any working day between 1100 to
1500 hours up to 09-01-2014.
The completed application, containing two hard copies and one soft copy (on a non-rewriteable CD)
of the EOI, should be submitted in a sealed cover super scribed with the title "Detailed Project
Report for setting of Telecom Finance Corporation" before the last date and time at the following
address:
Shri G. Baskaran, Director (B&P), 7th Floor, Room No. 702, 20 Ashoka Road, Sanchar Bhawan, New
Delhi-110 001.
Late Applications: Any application received after the last date and time for submission of the same,
i.e. 1500 hours (IST) on 09-01-2014, shall not be accepted. Applications received after the last date
shall be summarily rejected and returned unopened.
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NOTICE INVITING EOI
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATIONS & IT
DEPARTMENT OF TELECOMMUNICATIONS
INVITATION FOR EXPRESSION OF INTEREST FOR
“DETAILED PROJECT REPORT ON
SETTING UP TELECOM FINANCE CORPORATION”
Department of Telecom, India invites applications for Expression of Interest (EOI) from experienced
and reputed firms or a consortium of firms for providing comprehensive consultancy on "Detailed
Project Report for setting of Telecom Finance Corporation." Detailed terms and conditions are
prescribed in the EOI document, which can be downloaded from the website: www.dot.gov.in.
Alternatively, the document can also be obtained in person from Shri Vinod Kumar, ADG (Plan), 10th
Floor, Room No. 1009, 20 Ashoka Road, Sanchar Bhawan, New Delhi-110001 on any working day
between 1100 to 1500 hours up to 09-01-2014.
The last date for submission of completed application, in a sealed cover superscribed “Detailed
Project Report for setting up of Telecom Finance Corporation” is 09-01-2014, up to 1500 hours (IST).
Applications would be opened on the same day at 1600 hours (IST) in the presence of available
applicants or their authorized representatives. The applications will be evaluated in accordance with
the pre-qualification and evaluation criteria as prescribed in the EOI document for the purpose of
short listing the applicants. Thereafter, the Request for Proposal (RFP) will be sent to the short listed
applicants only.
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DEFINITIONS
“Applicant” means a reputed Indian/foreign consultancy firm or a consortium of firms having a base
in India and having the requisite experience who has applied for the invitation for EOI.
“Application” means the EOI submitted by an Applicant in the prescribed format.
“DOT” or means Department of Telecom, Government of India.
“EOI” means Expression of Interest.
“RFP” means Request for Proposal.
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DETAILED PROJECT REPORT ON SETTING UP OF TELECOM FINANCE
CORPORATION
1. Introduction
There is a proposal under consideration of the Government of India for the creation of Telecom
Finance Corporation (TFC). It will be a financial institution committed to the development of
telecom infrastructure in India. The TFC shall serve as a nodal financial institution with an
objective of mobilizing and channelizing financing for telecom projects in order to facilitate
investment in the different sub-sectors of the telecom sector.
The annexure I provide a detailed overview relating to the background, the rationale for creation
of TFC, the proposed objectives of TFC, the legal and regulatory framework envisaged and the
proposed portfolio of products and services. The consultant’s report should study the above and
related aspects and provide expert views and recommendations.
2. Scope of Work
The consultant shall be required to undertake an exhaustive study of the present market
conditions in the telecom sector in India. Based upon such a study, a detailed business plan has to
be prepared highlighting the estimated market size for proposed TFC, targeted market share, list
of potential clients, capital structure and major sources and uses of funds etc. The business plan
should cover the following and other related issues as would seem relevant a. Corporate Strategy
b. Estimated Market Size for TFC
c. Targeted Market Share
d. Potential Clients of TFC
e. Capital Structure
f. Sources of Funds
g. Uses of Funds
h. Operations: Fund Based and Non-fund Based
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3. Time Schedule for Consultancy
The Consultancy report shall have to be submitted within three months after the award of the
contract. The interim report will be submitted within two months after the award of the contract.
4. Conflict of Interest
The selected firm shall not engage in activities that are in conflict with the interest of the client (DoT)
under the contract and they would not engage in any assignment that would be in conflict of interest
with their current obligations to the same or other clients. The selected firm that has a business or
family relationship with such members of DOT staff who are directly or indirectly involved in the
project will not be awarded the contract.
5. Pre-Qualification Criteria
(i)
The consultant firm should be in operation for at least five years in India as on
31.03.2013.
(ii)
The annual turnover of the company should be not less than Rs. 75 crores in each of the
years 2010-11, 2011-12 and 2012-13.
(iii)
The consultant organization should have significant domain knowledge of the telecom
sector through prior experience in assignments globally and/or in India
(iv)
The consultant organization should have proven track record of having executed
projects similar to the assignment proposed in the last five years.
(v)
The consultant should have in-house capability to take up the assignment and not
through any associate friendly organizations, subsidiaries, contacts etc.
(vi)
The consulting firm should not have been blacklisted/debarred/disqualified by any
regulator/ statutory body or Government entity or any international or national agency
for corrupt or fraudulent practices.
(vii)
The EOI and all associated correspondence shall be written in English and shall conform
to prescribed formats.
(viii)
EOI received by facsimile shall be treated as defective, invalid and rejected. Only
detailed and complete EOI received prior to the closing time and date for submission of
the EOI shall be taken as valid.
(viii)
Two hard copies duly signed by the authorized signatory and one soft copy (on a nonrewriteable CD) of the EOI prepared in accordance with the procedures enumerated in
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the EOI document should be submitted in a sealed envelope to the Department of
Telecom not later than the date and time laid down herein. In case of any difference in
hard copy and CD the contents of hard copy will prevail.
(ix)
All documents submitted by the applicant should be signed on each page by an
authorized signatory.
(x)
The firms may form a consortium to complement their respective areas of expertise, or
for other reasons. The consortium may take the form of a joint venture. In case of a
joint venture, all members of the joint venture shall sign the contract and shall be
jointly and severally liable for the entire assignment. The Department of Telecom would
only deal with the lead member in such cases.
(xi)
Firms which do not have any past experience in providing consultancy for projects
similar to “Detailed Project Report for setting of Telecom Finance Corporation” shall be
summarily disqualified.
6. Validity of Proposals
Responses to this EOI submitted by the bidders shall remain valid for a period not less than six
months from the last date for submission of EOI response. DOT reserves the right to reject any
proposal which does not meet this requirement.
7. Amendment of EOI
At any time prior to the deadline for submission of responses, DOT for any reason may modify the
EOI by amendment by updating the DOT’s website (www.dot.gov.in) and such amendment shall be
binding on bidders. DOT, at its discretion, may extend the deadline for the submission of responses.
8. Confidentiality
Information relating to the examination, clarification and comparison of the EOI shall not be
disclosed to any persons not officially concerned with such process until the process is over. Undue
use of confidential information related to the process by any firm may result in rejection of its EOI.
9. Clarification Note
The bidders may seek clarifications in writing regarding the EOI document within one week of issue
of EOI. The DOT shall respond in writing to any such request for the clarifications and all such
clarifications shall be posted on DoT website www.dot.gov.in
10. Criteria for Evaluation
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10.1 The EOIs would be evaluated on the basis of the following criteria:
Serial
Criteria
Weightage
No.
1.
Past Experience of the Firm
40%
a.
Number of years of experience of operating in India (Minimum 5
10%
years) – as on 31st March 2013
i.
Experience between 5 to 10 or more years
5-10%
(5% for 5 years; increasing by 1% for each successive year subject
to maximum of 10%)
b.
Global/Indian Experience in providing Consultancy for Projects of
30%
similar nature to "Detailed Project Report for setting of Telecom
Finance Corporation"
i.
Experience of 1 project
10%
ii.
Experience of 2 projects
20%
iii.
Experience of 3 or more projects
30%
2.
Experience of Key Personnel
20%
a.
Team Leader- In at least one project of similar nature with
10%
"Detail Project
Report
for
setting of
Telecom
Finance
Corporation"
b.
Domain Expert- In at least one project of similar nature
10%
3.
Financial Strength of the Firm (or Prime Applicant in case of
40%
Consortium)
a.
Average Annual Turnover Figure for the last Three Years
20%
(Qualifying annual turnover should be at least Rs. 75 crores in
each year )
Average annual turnover for 3 years (FYs 2010-11, 2011-12, 201213)
i.
Between Rs. 75 to Rs. 250 crores
10%
ii.
More than 250 crores
20%
b.
Average Net Profit for the last Three Years
20%
i.
Up to Rs. 50 crores
10%
ii.
More than Rs. 50 crores
20%
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10.2 All applicants obtaining more than 50% score on the basis of evaluation of EOI would be shortlisted for issue of the RFP.
11. Process to be followed
a. This is not a Request for Proposal (RFP) and commercials should not be submitted with the
EOI response. Any EOI response received with commercials will be rejected summarily
b. The cost of preparing and submitting the EOI shall have to be borne by the consulting firms
and the DOT reserves the right to reject any or all of the EOIs and/or annul the entire process
without assigning any reason what so ever.
c. Interested consulting agencies are requested to submit their EOI as per the prescribed format
given in Section - II. Documentary proof must be submitted for all claims made by the
consulting agencies. The EOI, in the prescribed format on company letter-head, must be
submitted in a sealed cover titled “EOI Detail Project Report for setting of Telecom Finance
Corporation"” and DELIVERED on any working day (Monday to Friday – 1100 to 1600 hours)
upto 09-01-2014, 15:00 hrs (IST) to the following address:
Shri G. Baskaran, Director (B&P), 7th Floor, Room No. 702, 20 Ashoka Road, Sanchar Bhawan,
New Delhi-110 001.
d. The last date for submission of the EOI will be upto 09-01-2014, 1500 hrs (IST).
e. EOI responses received after this time and date will NOT be entertained under any
circumstances. In case of the designated last day being declared a public holiday, the same
will be extended to the next working day.
f. This request for Expression of Interest is not an offer by the DOT, but an invitation to receive
response from eligible interested bidders for consultancy for the project "Detail Project
Report for setting of Telecom Finance Corporation" for DOT.
12. Issue of Request for Proposal (RFP)
On the basis of evaluation of EOIs, applicants would be short-listed. Only short- listed
applicants will be issued a Request for Proposal (RFP) document containing detailed Scope of
work/ Terms of Reference, Eligibility cum Evaluation criteria including requirement of key
personnel and other project formats etc.
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13. Right to Terminate the Process
a. DOT may terminate the EOI process at any time and without assigning any reason. DOT makes
no commitments, explicit or implicit, that this process will result in a business transaction with
anyone.
b. This EOI shall only be deemed to invitation to offer and does not constitute a commitment to
conduct procurement, or an offer of a contract or prospective contract. DOT shall not be
liable for any costs incurred by any potential vendor in the preparation and submission of
information in response to this EOI.
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Annexure I
A. The Background
The National Telecom Policy 2012 stipulates1 the creation of a Telecom Finance Corporation, with
the overall purpose of facilitating investments in the sector. The Planning Commission has
included the creation of a Telecom Finance Corporation as one of the targets for the 12 th Five
Year Plan. The document, inter-alia, observes 2“Telecom Finance Corporation may be created as a vehicle to access funds at competitive rates to
facilitate the funding needs of this sector on requirement.”
The Planning Commission has projected an outlay of Rs. 9, 43, 899/-3 crores for the telecom
sector during the 12th Five Year Plan to meet the various targets envisaged for expansion of
telecom services in the country.
B. Telecom Finance Corporation - The Rationale
Telecom infrastructure is a key enabler of economic growth. Investments in telecom
infrastructure generate significant positive externalities for various other sectors. In addition, the
same telecom infrastructure can be utilized by Law Enforcement Agencies (LEAs) for policing &
other related works, by authorities for climate related warnings/natural disaster management
information, banking sector, ATMs etc. A dedicated institution to take care of the funding
requirements of infrastructure-related projects in telecom would help to sustain and further
accelerate the pace of investments in telecom infrastructure.
The telecom industry is capital intensive as it needs to continuously adapt itself to the latest
technology. Major investments are required during the 12th Five Year Plan period in areas of
network expansion in rural and remote areas, network upgradation, NGN, IPV6, rural telephony,
broadband
expansion,
convergence
technologies,
value
added
services,
equipment
manufacturing etc. Telecom related infrastructure projects like fixed lines, wireless, broadband,
tower business etc. both for private as well as public sector need access to funding for huge
1
Clause 12.1, National Telecom Policy 2012
Twelfth Five Year Plan (2013-18) Vol. II, Page 266
3
Twelfth Five Year Plan (2013-18) Vol. I, Table 3.17
2
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capital expenditure requirements. The creation of a Telecom Finance Corporation would take
care of the short, medium & long term investment requirements of the sector.
The Department of Economic Affairs has decided4 to include the ‘Telecommunication & Telecom
Services’ as an infrastructure sub-sector. The Telecom Finance Corporation (TFC) shall act as a
vehicle for providing financing at competitive rates to telecom infrastructure projects.
It is anticipated that a dedicated source of funding would not only lead to a greater penetration
of telecom services to rural and remote areas of the country but also encourage and promote
R&D and indigenous manufacturing of telecom related equipment in small & medium scale
sectors.
TFC being a sectoral fund will have a better understanding of business models of telecom
companies. It will be uniquely placed to address the specific requirements of the companies in
the telecom sector.
C. Proposed Objectives of TFC
a. To make available schemes of funding such as line of credit, bridge loans, corporate loans,
debt refinancing, venture capital financing and other related financial/funding solutions for
borrowers in telecom sector.
b. To mobilize various sources from domestic & international sources at competitive rates.
c. To support manufacturers of telecom equipment especially in small & medium scale sectors
by providing financing at competitive rates.
d. To provide non-fund based services like- Guarantees, Letter of Credit, Letter of Comfort,
Indemnification, Financial advisory and consultancy services and other related activities.
e. To work as a catalyst to streamline the functions of its borrowers in financial, technical and
managerial areas to ensure optimum utilization of available resources.
f. Financing of all such activities that contribute towards overall development of Information &
Communications Technology (ICT) in the country.
g. To expand into other financial services like Merchant Banking etc. to provide a complete
bouquet of financial services to prospective clients.
h. To contribute by way of equity participation in other infrastructure related funds.
i.
To adopt best practices in financing infrastructure and develop core competencies in
facilitating infrastructure development.
4
DEA, MoF: F. No. 13/6/2009-INF dated 25.2.2013
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D. Legal & Regulatory Framework
a. Telecom Finance Corporation could be formed on the lines of Power Finance Corporation
(PFC), IRFC, REC, Tourism Finance Corporation of India Ltd. and other such specialized sectorspecific development financing institutions.
b. Telecom Finance Corporation could be incorporated under the Companies Act (1956) as a
Public Financial Institution under Section 4A of the Companies Act 1956.
c. It could also be registered as a Non-Banking Financial Company Non-Deposit Infrastructure
Finance (NBFC-ND-IFC). It is mandatory for every Non-Banking Financial Company (NBFC) to be
registered with RBI in terms of Section 45-IA of the RBI Act, 1934 to commence or carry on any
business of non-banking financial institution. The governing policies of TFC will thus be in
accordance with the norms laid down by RBI for Non-Banking Financial Company Non-Deposit
Infrastructure Finance (NBFC-ND-IFC).
E. Proposed products /services
TFC’s broad portfolio of products and services is proposed to include the following E 1. Fund Based

Long term loans

Short term loans

Project Finance

Syndicated Loans

Structured Finance

Mezzanine Finance

Foreign exchange loans

Bridge Loans

Risk Management Products

Debt Refinance

Loans/Grants/Interest Free Loans
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
Lease Financing for Purchase of Equipment
E 2. Non-fund Based

Guarantees

Letter of Credits

Letter of Comfort

Indemnifications

Advisory /Consultancy Services
 Access to Finance
o Providing advisory services geared towards financial institutions and
governments.
o Helping to improve access to basic financial services for enterprises.
 Investment Climate
o Helping the government to improve legal, institutional, and regulatory
conditions for more conducive growth of the telecom sector.
 Corporate Advice
o Helping firms grow and become more competitive through advice on
corporate governance and other key needs.
 Environmental and Social Sustainability
o Promoting the large-scale adoption of business models that are
profitable, environment-friendly, promote social inclusion and social
development.
 Promoting International Co-operation
o Providing financing and consultancy to telecom sector entities in
developing countries.
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Annexure II
PART I
FORMAT FOR SUBMISSION OF EOI
Project Title:
EXPRESSION OF INTEREST (EOI) FOR “DETAIL PROJECT REPORT FOR SETTING
OF TELECOM FINANCE CORPORATION"
Use the format below to provide consultant organization and experience (in management
consultancy business as on 31st March 2013).
1.
Details of the Firm:
a.
Name:
b.
Legal Status: Individual/ Association/ Joint Venture/ Consortium
c.
Registered Address, Tel. No., Fax:
d.
Contact Person, Designation and Address including Tel. No., Fax, e-mail:
2.
Brief Profile of the Firm:
3.
Past Experience of the Firm:
Self-certified copy of the Certificate of Incorporation of Business in support of having been in
operation for at least five years in India as on 31.03.2013 to be submitted.
a.
Number of Years in Business in India:
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b.
Global experience in providing consultancy for projects of similar nature to Telecom
Administrations/Other Companies:
c.
Experience in consultancy for projects of similar nature in India:
Experience certificate from clients in support of Global/Indian Experience in providing
Consultancy for Projects of similar nature to "Detailed Project Report for setting of Telecom
Finance Corporation".
4.
Experience of Key Personnel:
Please provide, as an annexure to this form, abridged CV(s) of no more than one page (for
each individual) in respect of key personnel (Team Leader, Domain Expert etc.) with relevant
experience as indicated in para 10 of this EOI document.
5.
Financial Strength of the Firm:
Self-certified copies of audited ‘Income Statement’ & ‘Balance Sheet’ for F.Y. 2010-11, 2011-12
and 2012-13 may be submitted in support of above.
a.
Turnover figures for the last three years:
b.
Average Net Profit for the last three years:
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PART II
Format for Submission of Project Credentials
Please provide details of a maximum of three (3) projects meeting the experience criteria supported
by client certificate. The project experience statement shall be provided in the prescribed format
given below:
Title
Description
Client Name
Address of the Client
Client Reference
Name
& Phone No.:
e-mail ID:
Designation:
Project Title
Type of Project
Project Scope (in brief)
Project Location(s)
Value of the Project (in INR only)
Status of the Project (completed/ongoing)
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