India's VSNL would build a telecommunications cable connecting India with Europe for $250 million in partnership with two firms, a Reuters report said.
The Reuters report said the announcement lifted the company's shares 7.8% in a Mumbai market that was up 0.2%.
VSNL, a former state-run overseas telecommunications monopoly that is now controlled by Tata Group, said the cable would be built in partnership with private equity venture SEACOM and Telecom Egypt, the Reuters report said.
It will directly link Mumbai to Paris, London and Madrid via Egypt and will give VSNL 1.28 terabit of new capacity during 2009, the company said in a statement.
The Eurasia Cable System would also have future options for additional connectivity in the Gulf region and multiple locations in Europe, VSNL that is in the process of changing its name to Tata Communications, the report added.
The report further said the company earlier announced that it would spend $200 million on an intra-Asia submarine cable to be built by Tyco Telecommunications that would link Singapore, Hong Kong and Japan with an additional connection to the Philippines and, potentially, Vietnam.