Only 2 firms bid for telecom network proj in naxal-hit areas

Only two players, Vihaan Networks and HFCL, have submitted bids for setting up telecom network in naxal-hit areas, a project which already has faced delays due to the pricing issue.
"Two companies-Vihaan Network Limited and HFCL have submitted their bids. There techno-commercial bids have been opened. We expect to finalise bids within three weeks from now," BSNL Chairman and Managing Director R K Upadhyay told PTI.
The Ministry of Home Affairs has been pushing for installation of mobile towers in naxal-affected area since 2010. Absence of mobile services has made it tough for the security forces to operate and get timely help in critical situations, leading to loss of lives in some incidents.

The government has identified areas in the states of Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Bihar, Jharkhand, Maharashtra, West Bengal, Odisha and Uttar Pradesh.
The government, in May 2013, had approved a cost of about Rs 3,046 crore for the project.
The project was to be completed by June but its progress was stuck due to wrong estimates given by the Department of Telecom, official sources said.

There was a difference of about Rs 789 crore between the actual requirement submitted by BSNL and the budget approved by the Cabinet, sources said.
The higher estimates were placed before inter-ministerial panel Telecom Commission on March 27 which directed BSNL to re-tender the project.

But this time only two players turned up for the project against three bids in the previous round. Also, no foreign telecom gear maker showed interest in the project.
"I am pleased that reputed Indian telecom equipment makers have again come froward for this project. BSNL and government should take speedy direction to that effective communication network is established in these area to meet dire need of security forces," industry body TEMA Chairman NK Goyal said.