The Department of Telecom (DoT) has asked Tata Communications to furnish complete details about the projects for which it intends to raise additional funds. The move follows Tata Comm approaching the government to seek approval for raising funds.

The government holds 26 percent stake in the company. As per norms, Tata Comm has to seek government approval before any fund raising exercise. The company can not raise debts in excess of its net worth.

Tata Comm in its application had merely mentioned that the projects will get delayed as it is facing cash crunch. It had not provided specific details of the projects or issues concerned.

“The company has sought to raise additional funds to support some of its growth and investment projects and is working with key stakeholders towards the same. Tata Communications has approached its promoters, including the Government of India, for enhancement of borrowing limits to the levels permitted under the Companies Act.” said Tata Communications spokesperson on the new development.