Bharat Sanchar Nigam Limited (BSNL) is likely to get a grant of Rs 60 billion for rolling out and maintaining wireless networks in India?s naxal-prone and naxal hit territories across nine states. The Central government will make the funds available through the Universal Service Obligation Fund (USOF).Since, naxal affected areas are commercially unviable for private mobile operators, the Department of Telecommunications (DoT) has made recommendations to award theses areas to BSNL without having to participate in the bidding process. Another reason for entrusting BSNL with the responsibility for managing telecom services in these areas is to safeguard the security of these sensitive areas and the country.

The Telecom Commission is going to meet on May 24,2012 to consider BSNL?s demands for  Rs  58.09 billion support over a five-year period for building and operating close to 2,200 towers in the naxal hit areas.

Besides this, the Telecom Commission will also consider another proposal by the sector regulator Telecom Regulatory Authority of India (TRAI) to provide BSNL with Rs 27.5 bilion over a two-year period to run its subsidised wire-line services in rural India.

In fact, the move to award a project to BSNL, bypassing the bidding process, will entail an amendment in the Indian Telegraph Act, especially since the proposed rollout in naxal zones will be subsidised by USOF. Under the present Indian Telegraph Act and Rules, BSNL is required to participate in an open tender to qualify for such subsidy.

BSNL had earlier opted out of the project after the USOF Administrator had dismissed its plea for 100 per cent subsidy support on a standalone basis.

In case the Telecom Commission takes a favorable view of granting subsidy to BSNL, then DoT is likely to seek cabinet nod to expedite the project.