PMO refers BSNL's jinxed 93-mn-line tender to Pitroda

The controversial 93-million GSM line tender of Bharat Sanchar Nigam Ltd (BSNL) has now been referred to Sam Pitroda, the Prime Minister’s advisor on infrastructure and innovation.

The PM’s Office had told the Department of Telecommunications to refer the entire vexed issue to Pitroda, a ministry official confirmed.

This directive came after Communications and Information Technology Minister A Raja wrote a letter to Prime Minister Manmohan Singh, seeking his intervention for early resolution of the controversy. The minister had said corporate rivalry was affecting the decision.

BSNL had invited bids for laying 93 million GSM lines at an estimated cost of about Rs 36,000 crore. But, the company had not been able to place the order because of various issues — legal battles and the home ministry’s directive that the government undertaking cannot award orders to Chinese companies in border areas.

Last month, the PM had constituted a committee under Pitroda to look into the functioning of the two government telecom units, BSNL and MTNL.

Currently, the Chief Vigilance Commissioner (CVC) is looking into the controversies regarding the BSNL tender. It is learnt his office had recommended scrapping the tender and issue of a new one. The matter was referred to the CVC after telecom equipment provider Nokia Siemens, disqualified on technical reasons, petitioned the courts. However, the high court here had upheld the disqualification.

Raja has, however, opposed CVC's decision for a fresh or snap tender, saying this could also be challenged by any disgruntled party. "BSNL needs these lines badly in view of its rapidly declining market share, and inadequate capacity to add mobile subscribers may lead to further deterioration," the minister had said in his letter to the PM.