MTNL plans to set up wind power plant in Maharashtra

As part of its diversification, state-run telecom player Mahanagar Telephone Nigam Ltd (MTNL) plans to set up a wind power plant in Maharashtra.

The company will soon appoint a consultant for carrying out a feasibility report over its proposed power plant.

A senior official from MTNL confirmed the development and said the consultant would work out all the details with regard to setting up of the plant till commissioning.

Though, the consultant will only give the telecom PSU an estimate over the investment for the plant, the company’s initial calculations show that it will over Rs 100 crore in the initial phase.

The capacity as well the location of the plant will be decided after the report. The company will soon invite bids for appointment of a consultant, which will have to submit a bid within eight weeks of award of work, the official added.

MTNL is yet to assess the wind energy potential in the Maharashtra region, its market and major players as well the competition.

The report will analyse all the aspects, including financial feasibility, for setting up the wind power plant.

A final call over the planned plant will be taken only the after the feasibility report, the official added.

The move may assume importance on the back of dipping revenues and market share in the mobile market in India, which is the company’s core business.

MTNL operates in Delhi and Mumbai circles and has posted a loss of about Rs 671 for the third quarter ended December 31, 2010.

MTNL’s net continues to be dragged down by retirement benefits, increase in dearness relief of pension and high wages, apart from the high competition and falling tariffs in the telecom industry.

The company, along with another telecom PSU BSNL, was given third generation (3G) spectrum a year ahead of auction for private players but both the firms could not take advantage of it.

Now, the department of telecommunications plans to support MTNL by giving subsidy to support its higher pension and other retirement payouts from the licence and spectrum fees which both the PSUs give to the government.