As stipulated in the National Telecom Policy 2012 (NTP-2012), the DOT has moved a memo for the approval of the Telecom Commission for the formation of a Telecom Finance Corporation (TFC), in order to mobilise funds and to facilitate the funding needs of the telecom sector. The sector ( meaning the private telecom companies) are in much need of funds and the DOT proposal is intended mainly for that purpose.
The target of TFC is to mop up about Rs.38,000 crores within the first five years. A 10 Member Board will be appointed to govern the TFC. Authorised capital will be Rs. 10,000 crore and the initial paid up equity of Rs. 1000 crore will be contributed by the government.