DoT sets new deadline to complete cable network for Defence

New date for the Rs 13,000 cr project is July 2015

The Department of Telecommunications (DoT) hopes to complete the work for the optical fibre cable network for the Defence by July 2015, according to a recent discussion. The DoT had failed to implement the project within the stipulated three-year deadline since the turnkey project got approval from the Government in 2009.

While the project was started in August 2012, it was initiated in 2009 with a target to complete the project in three years. The total cost of the project is Rs 13,334 crore.

The DoT and the Ministry of Defence had signed an agreement in May 2009 and the Cabinet Committee on Investment (CCI) had approved the budget of Rs 9,175.16 crore in December 2009 for implementation of Defence network. Under the agreement, the DoT had promised to build an exclusive cable network for the Defence forces in return for vacating spectrum.

The project includes Rs 1,077.16 crore for Air Force Network and Rs 8,089 crore for the tri-service backbone which will also be used by Army and Navy Access Network. Meanwhile, the CCI had enhanced the budget by Rs 5,236 crore taking it to Rs 13,334 crore in July 2012.

Early this year, the Directorate-General of Signals at the Army headquarters had raised concerns over the delay in implementation of the project.

After the DoT and the Ministry of Defence had signed the deal, Defence has released 40MHz of spectrum for mobile operators, but the network is yet to be implemented.

The tender for laying the network has been cancelled thrice. Bharat Sanchar Nigam Ltd (BSNL) was entrusted to roll out this cable network. But the state-owned telco has not been able to close the tender for procuring the optical cable. BSNL had first floated tenders in January 2010 which was cancelled. A fresh tender was again floated November 2012, but that was also quashed.

According to industry sources, about 14 companies, including L&T, Sterlite and Punj Lloyd, had expressed interest in the project which includes laying optical fibre across 57,000 km. The network is scheduled to connect 129 Army, 162 Air Force and 33 Navy installations.

The agreement between the two ministries was crucial in 2009 as the DoT did not have spectrum to allocate at that time.