Fight within DoT delays crucial project in red corridor

An internal fight and wrong mathematical calculations by a wing of Department of Telecom (DoT) has led to a delay in a crucial telecom project in Naxal -hit areas, raising concerns among security agencies who have taken up the matter at the highest level of government.

Security agencies have urged the authorities concerned to speed up phone connectivity at nearly 2,200 locations across nine states.

After the security agencies raised the issue with the Prime Minister's Office, a meeting was held within DoT in which details were sought from BSNL and Universal Service Obligation Fund (USOF), a department created to look after connectivity in non-profitable areas of the country.

The issue got caught in bureaucratic wrangles after USOF red-flagged the project, which had gone from Rs 3,046.12 crore, cleared by Union Cabinet on June 4, 2013, to Rs 3,900 crore.

BSNL, which had tendered the project and finalised all details about installations of telecom towers, cited a "calculation mistake" on part of USOF, which had unilaterally undervalued the maintenance cost for the towers besides reducing the prices of several other components.

Although USOF has maintained that the cost of installing telecom towers in left-wing extremism affected areas in the nine states was worked out by a committee, sources in the telecom ministry said the department was delaying the project despite having funds.

A senior Home Ministry official said that the delay was causing a lot of operational hazards and going against the government policy of ensuring full-fledged development in the remote areas of naxal-hit states.

Even Prime Minister Manmohan Singh had announced at the Telecom summit in last December that the Centre has approved a scheme for installing mobile towers at about 2,200 locations in areas affected by Naxal violence.

BSNL contended that VAT, excise and other state taxes had not been calculated by USOF before submitting the project to the Union Cabinet.

USOF is likely to recommend to the Telecom Commission that a re-tendering process be initiated which, however, may lead to litigation from the selected companies, thus resulting in a lengthy delay, officials felt.