Ravi Shankar Prasad, Minister of Telecommunications and IT has approved Bharat Sanchar Nigam Limited?s (BSNL) proposal to establish telecom infrastructure in nine naxal affected states at a revised project cost of Rs 35.67 billion.
The revised cost is well above the original estimate of Rs 29.4 billion by the Universal Services Obligation (USO) Fund for establishing telecom infrastructure in 1,836 regions prone to left-wing extremism. The USO Fund is responsible for handling both capital and operational expenditure for the project.
Prasad has approved the revised outlay on the grounds that the scope of the project stands modified and ownership of the assets to be created is proposed to be vested with BSNL to ensure long term continuity of services. The revised project cost is expected to meet BSNL?s capex requirements for mobile networks in the 1,836 sites and opex costs for 2,199 telecom sites over a five-year period.
The network rollout by BSNL in the naxal-affected states will be monitored by the Ministry of Home Affairs as the project is aimed at enhancing communications and surveillance operations by national security agencies in these regions. Meanwhile, the Telecom Commission has recommended Cabinet approval for transferring mobile network assets created in the naxal-hit regions to BSNL for ensuring continuity of GSM coverage after USO Fund stops funding the project after five years.
Earlier, the Telecom Commission had asked BSNL to invite fresh bids from network gear suppliers, following the cancellation of initial bids for the tender over cost issues. The revised project cost is based on equipment prices discovered in the second tender floated by BSNL in May 2014.
With an aim to expedite the project, BSNL is expected to place purchase orders with Vihaan Networks Limited and Himachal Futuristic Communications Limited for procuring telecom equipment worth
Rs 25 billion, after receiving cabinet approval for the project.
