International long distance telecom operator Data Access (India) Ltd has put its proposed Rs 2,000-crore (Rs 20 billion) undersea submarine cable project on the backburner.
A change in the company's promoters resulted in the project being further delayed, as it was set to be commissioned late last year.
A top company official said the project would be revived only after the new management takes complete charge of the company. He, however, did not specify any deadline for commencing the project.
Data Access was to form a consortium with two firms from Bahrain and Saudi Arabia to set up the undersea cable Mumbai and the port of Fujairah in United Arab Emirates.
The undersea cable was slated to have a bandwidth of over 8 terabits and the company was expected to commence construction of the cable in December 12, with a projected completion time of 12 months.
The company was also scouting for partners for the project.
The ILD major was haunted by a spate of issues, including differing of a proposed IPO and a winding up petition filed by Bharat Sanchar Nigam.
Data Access had to defer its proposed IPO, which was slated to open on March 29, 2004. The Rs 80-85 crore (Rs 800-850 million) equity issue was "postponed indefinitely" following a Sebi letter seeking clarifications on alleged an thwarting of Foreign Exchange Regulation Acts.
The company's was to issue of 50 million equity shares of Rs 10 each public through book-building in a price band of Rs 17-20.
Meanwhile, BSNL had also filed a petition seeking winding up of the company in Delhi High Court over outstanding payments of over Rs 200 crore (Rs 2 billion) to the incumbent.
The state-owned telephony major had also disconnected Data Access' Point of Interconnect during the period.
Mired in controversy, the company's founder Siddhartha Ray sold it to a consortium led by Chennai-based entrepreneur K C Palanisami last year.
A former Member of Parliament, Palanisami is trying to revive the company.