CCEA set to release Rs 1,077 crore for defence network
The Cabinet Committee on Economic Affairs is likely to approve on Thursday the communications ministry’s request for additional funds to set up an alternate network project for the defence services.
By Joji Thomas Philip, TNN |
NEW DELHI: The Cabinet Committee on Economic Affairs (CCEA) is likely to approve on Thursday the communications ministry���s request for additional funds to set up an alternate network project for the defence services.
Government sources told ET that the CCEA would clear the DoT���s demand for Rs 1,077 crore to complete the first phase of the alternative fibre network project undertaken by BSNL. Following the completion of this project, the defence forces will switch to their communication requirements to the fibre network and vacate radio frequencies for commercial telephony.
In the first phase, BSNL will build a 5,200 km optic fibre network for the Indian Air Force���it will connect about 160 locations operated by IAF.
ET has learnt that the communications ministry had approached the Union Cabinet after finance minister P Chidambaram had allocated a mere Rs 152 crore for this project in the budget in February, 08. The finmin had allotted Rs 95 crore in the previous year. BSNL has already spent over Rs 500 crore on the project but not received any financial grants from the finmin.
The finmin had earlier proposed that the DoT fund the project by auctioning 2G spectrum to all the new entrants who were awarded telecom licenses recently, but the communications ministry had rejected this recommendation.
The Indian Air Force is expected to vacate as much as 40 MHz of radio frequencies after the completion of this network, and this will help new entrants get pan-India start-up spectrum. Additionally, vacation of spectrum by the armed forces will also enable the DoT to auction 3G radio frequencies.
At present, Cellular companies such as Bharti Airtel, Vodafone Essar and BSNL cannot launch third generation (3G) telecom services such as mobile TV, interactive gaming and high speed internet on mobiles unless 3G spectrum vacated by the defence forces is reallocated to them.
The second phase of the project is estimated to cost well over Rs 1,000 crore and will connect 250 stations of the army, while the third phase will connect about 30 bases of the Indian Navy. The DoT was forced to rework the project last year after the defence ministry had rejected its Rs 980 crore scheme to build an alternate network.
Government sources told ET that the CCEA would clear the DoT���s demand for Rs 1,077 crore to complete the first phase of the alternative fibre network project undertaken by BSNL. Following the completion of this project, the defence forces will switch to their communication requirements to the fibre network and vacate radio frequencies for commercial telephony.
In the first phase, BSNL will build a 5,200 km optic fibre network for the Indian Air Force���it will connect about 160 locations operated by IAF.
ET has learnt that the communications ministry had approached the Union Cabinet after finance minister P Chidambaram had allocated a mere Rs 152 crore for this project in the budget in February, 08. The finmin had allotted Rs 95 crore in the previous year. BSNL has already spent over Rs 500 crore on the project but not received any financial grants from the finmin.
The finmin had earlier proposed that the DoT fund the project by auctioning 2G spectrum to all the new entrants who were awarded telecom licenses recently, but the communications ministry had rejected this recommendation.
The Indian Air Force is expected to vacate as much as 40 MHz of radio frequencies after the completion of this network, and this will help new entrants get pan-India start-up spectrum. Additionally, vacation of spectrum by the armed forces will also enable the DoT to auction 3G radio frequencies.
ADVERTISEMENT
At present, Cellular companies such as Bharti Airtel, Vodafone Essar and BSNL cannot launch third generation (3G) telecom services such as mobile TV, interactive gaming and high speed internet on mobiles unless 3G spectrum vacated by the defence forces is reallocated to them.
The second phase of the project is estimated to cost well over Rs 1,000 crore and will connect 250 stations of the army, while the third phase will connect about 30 bases of the Indian Navy. The DoT was forced to rework the project last year after the defence ministry had rejected its Rs 980 crore scheme to build an alternate network.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
