Maharashtra eyes broadband space via discom network

Company whose monthly revenue is declining has Rs 13,000 cr dues on farmers

The Maharashtra government, to rescue its crisis-ridden distribution company MahaVitaran, is looking at launching a broadband service using its distribution network.

State energy minister Chandrashekhar Bawankule told Business Standard, “Various companies have evinced interest to associate with MahaVitaran’s broadband venture. These companies have argued that MahaVitaran can explore the telecom market through convergence of the power sector with the telecom sector by making available low-cost and high-quality telecom infrastructure through its distribution infrastructure.”

MahaVitaran would soon appoint a project management consultant to launch the broadband venture. “MahaVitaran will take a call whether to allow BSNL or only the private sector companies to bid for the broad band services,” Bawankule added.

A MahaVitaran official, who did not want to be named, said the broadband proposal was at the preliminary stage. “'This is one of the options being considered to tackle the present financial problems faced by MahaVitaran. It has to recover arrears of Rs 13,000 crore from farmers especially from the drought-hit areas. MahaVitaran’s monthly revenue collection is falling. Broadband may mobilise substantial revenue, which is badly required,” he added.