Question : TELECOM NETWORK OF POWER GRID CORPORATION



(a) whether the ambitious project for setting up of a nation wide long distance telecom network of Power Grid Corporation of India has failed to evoke interest among major international telecom operators;

(b) if so, the main reasons therefor;

(c) the number of bids received for the above projects within the country and from outside;

(d) whether this is a major warning signal for the telecom investment scenario; and

(e) if so, the steps being taken by Government to encourage forex inflow?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF POWER ( SHRIMATI JAYAWANTI MEHTA )

(a) to (e): In response to the `Expression of Interest` issued in the last week of March, 2000 for selection of joint venture partner for establishment of National Long Distance Operation (NLDO), POWERGRID has received seven proposals from major domestic and international telecom operators. These include four offers from domestic firms and three offers from consortium of international and domestic firms. Considering the massive telecom backbone infrastructure required to be established for becoming an NLDO, the response is considered to be satisfactory.