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TC to consider BSNL bid for mobile towers in North East

BSNL's Rs 1,648 cr bid for setting up mobile towers in unconnected villages of North East will be reviewed

Press Trust of India  |  New Delhi 

BSNL
A woman speaks on her mobile phone in front of the logo of Bharat Sanchar Nigam Ltd (BSNL) painted on a wall outside its office in Kolkata. Photo: Reuters

The Commission is likely to consider BSNL's Rs 1,648 crore bid for setting up in unconnected villages of the North East in its meeting tomorrow, official sources said.

will be installed under the Comprehensive Development Plan for the North-Eastern Region (NER) which was approved by the Cabinet in September 2014.

Under the plan, 8,621 villages out of 9,190 unconnected villages are to be covered by installation of 6,673 with total outlay of Rs 5,336.18 crore.

"Commission is likely to consider BSNL's part of North East project tomorrow," a official, who did not wish to be named, told PTI.

The Universal Service Obligation Fund (USOF), which is handling the project, is likely to submit bid proposal for installing around 4,000 out of the 6,673

The state-run has been entrusted with task of installing network in tough terrain of and two districts of -- Karbi Anglong and Dima Hasao.

It has submitted bid received from Vihaan Networks Limited and HFCL for installing around 2,000 towers for Rs 1,648 crore. These two domestic equipment firms had rolled out mobile network project for in Left wing extremist areas across nine states.

Rest of the project was to be rolled out with help of private operators. After no-show by private players for the tender, the USOF finally received a bid from Bharti Airtel this year which was cleared by the Commission in its last meeting on September 8.

Airtel has placed a bid for installing around 2,000 for around Rs 1,660 crore.

According to sources, the USOF has deferred plan to roll out in Meghalaya for time being and will work on the project through separate tenders.

The Commission will also discuss recommendations of inter-ministerial group.

The IMG -- tasked with finding a remedy to the financial difficulties of the sector -- had recommended that the payments for spectrum purchased in auctions be made in 16 installments (16 years) as against the current practice of 10 years.

The IMG had also favoured a cut in interest rates on penalties by switching from PLR based to MCLR based rate, which could provide relief of about two percentage points in the current situation.

The Indian industry, which is in the midst of an intense tariff war, owes a staggering Rs 4.6 lakh crore to various financial institutions and banks. Old operators have blamed their declining margins to tariff war triggered by entry of Reliance Jio about a year ago.

The panel in its last meeting had sought additional details from IMG over on its recommendations.

First Published: Thu, September 28 2017. 14:48 IST