New Delhi, Aug 20 - The government Thursday said it would convert loans taken by state-owned Tamil Nadu Telecommunications Ltd (TTL) to equity as part of efforts to revive the ailing company.

TTL is a joint venture between Telecommunications Consultants India Ltd (TCIL), a public sector telecom consultancy and engineering company, and Tamil Nadu Industrial Development Corp.

Loans from the government amounting to Rs.15.43 crore will be converted to equity, increasing TCIL's stake in the joint venture to 49 percent, an official statement said Thursday.

The financial restructuring will also allow TCIL to provide bridge loans to the extent of Rs.12.5 crore till financial assistance from banks are arranged.