BSNL issues purchase order of Rs 8,678 cr for defence network

State-run BSNL has issued advance purchase order of around Rs 8,678 crore to five companies for supplying and deploying optical fibres for the communication network of defence forces.
"We have issued letter of intent to companies for supply, roll out, commission and maintenance of optical fibre network for defence forces. The total order is of about Rs 8,678 crore. The contract has to be completed within 18 months from the date work is awarded to them," BSNL Managing Director A N Rai told PTI.
BSNL has issued advance purchase order of about Rs 2,110 crore to state-run manufacturing unit ITI, Rs 2,442 crore to Larsen & Toubro, Rs 1,448 crore to Telecommunications Consultants India Ltd, Rs 1,036 crore to Vindhya Telelinks and of about Rs 1,640 crore to Sterlite Technologies.

The Cabinet in July 2012 had approved outlay of Rs 13,334 crore for the project, which includes OFC based network for Army, Navy and Tri-services backbone. The government had fixed the deadline for completion of the project by June 2015.
The Defence Ministry and the DoT had signed an agreement under which the Defence Ministry had agreed to vacate 25 megahertz (MHz) of 3G spectrum and 20 MHz of 2G in phases. In return, the DoT had committed to set up an exclusive defence band and defence interest zone for the armed forces.
The Defence Ministry vacated 15 MHz of 3G spectrum, which was auctioned in 2010 fetching revenue of about Rs 67,700 crore to the exchequer. Defence also vacated 15 MHz of 2G spectrum, which was allocated to new operators.

Under the agreement, the remaining spectrum - 10 MHz spectrum in 3G and 5MHz in 2G - is to be vacated only after the OFC network is completed.
Rai said that he expects work will be awarded to companies in other two months time.
The Rs 597-crore tender of OFC network for Navy and Rs 4,211-crore tender for transmission network have come under litigation and the matter is sub judice.