VNL & HFCL to supply telecom gear in nine naxal-hit states

KOLKATA: Delhi-based VNL and Himachal Futuristic Communications Ltd ( HFCL) have emerged the lowest (L1) and second-lowest (L2) bidders, respectively, for supplying telecom gear worth over Rs 2,500 crore for the much-awaited rollout of mobile networks by Bharat Sanchar Nigam Ltd (BSNL) in nine naxal-hit states.

While VNL would have to meet 70% of the supply requirements, HFCL would need to meet the balance, Anupam Shrivastava, BSNL’s director (consumer mobility), told ET. The two companies would also be responsible for running the mobile networks in the regions prone to left-wing extremism for five years, post-installation, a possible reason why foreign vendors stayed away from bidding for the contract.

The Telecom Commission (TC) had recently urged BSNL to invite fresh bids from network gear suppliers after its initial tendering exercise was scrapped over cost issues. The TC is the highest decision making body in the communications ministry.

The home ministry wants BSNL to hasten mobile rollouts in naxal hotbeds to beef up security and surveillance operations but the state-run telco will need to seek fresh TC nod since the revised project cost, based on latest price bids put in by VNL and HFCL, is 10% above the cost estimates.