Tower companies plan to cut fossil fuel use

NEW DELHI: Mobile infrastructure or telecom tower firms are aiming to further cut carbon footprint by reducing dependency on fossil fuels as part of the ‘Go Green’ initiative, and are seeking tax holidays, low-cost grid power and fuel subsidies via the Universal Service Obligation Fund (USOF).

The sector has already deployed 90,000 diesel-free mobile sites, according to Towers and Infrastructure Providers Association (Taipa), a lobby group that represents India’s dominant tower firms such as Indus Towers, Bharti Infratel and American Tower Corporation.

“The industry is asking for the availability of electricity to mobile towers at industrial rates and tax holidays for setting up units in backwards areas,” Taipa director general Tilak Raj Dua told ET, adding that the tower firms are aggressively aiming to use alternate energy resources to reduce diesel dependence.

There are currently more than 4.5 lakh mobile tower sites operational in the country and the tenancy ratio is set to increase to 2.9 by March 2020, according to a KPMG-Assocham study.

The sectoral players as a part of their ‘green’ ambitions are increasingly using efficient energy storage solutions to optimise energy usage, and are leveraging high-efficiency batteries such as lithium-ion (Li-ion) and advanced VLRA ( valve-regulated lead-acid) batteries at several sites.

Billionaire Mukesh Ambani-owned new telecom player Reliance Jio has already given a Rs 280 crore worth contract to French company Saft, which is deploying specialised Li-ion battery systems to power former’s base station sites.

Taipa, however, feels that a zero or minimum customs and excise duties on various renewable energy components such as solar cells and modules would further provide impetus to tower infrastructure firms to shift focus to alternative energy resources.

“The government should also introduce fuel subsidies for operators either through USOF or any other alternative mechanism as may be deemed appropriate to remote and rural areas till the power connections become available at industrial rates,” Dua added.

In 2012, the government unveiled green telecom policy that aims telecom service providers to shift their cell sites to hybrid power resources and declare their carbon footprint on biannual basis, a target which was opposed by stakeholders. Taipa, however, argues that no timeline should be given owing to challenges.