The Department of Telecommunications (DoT) is set to issue a global tender to invite interested entities for setting up a telecom finance corporation (TFC). The proposed TFC will be registered as a non-banking and non-deposit infrastructure finance company. The government has set a deadline of March 31, 2017 for setting up the TFC. It would be a public sector unit under the administrative control of DoT.

The government had proposed to set up TFC in the 12th Five Year Plan period (2012-17). The Cabinet had approved the creation of TFC under the National Telecom Policy 2012. in the proposal was cleared in 2014, after some amendments and new rules were introduced  on funding, legal and regulatory issues.

TFC is expected to facilitate funding for the telecom sector.