(a) whether attention of the Government has been drawn to the news-item captioned `Power Grid to enter telecom business` appearing in the Times of India dated April 8, 2000;
(b) if so, the facts of the matter reported therein; and
(c) the extent to which it is likely to help financially the Power Grid Corporation of India?
THE MINISTER OF STATE IN THE MINISTRY OF POWER
( SHRIMATI JAYAWANTI MEHTA )
(a) : Yes, Sir.
(b) & (c) : Opening of long distance telecommunication sector
by Government and successful experience of power utilities world
wide in the telecommunication sector have paved the way for
POWERGRID to enter into telecommunication business. The power
transmission lines owned by POWERGRID provide excellent
connectivity throughout the country, which would enable setting
up an optic fibre network on all India basis for broadband
communication.
In view of the complexities involved, POWERGRID
had appointed reputed consultants to advise in its
diversification plan. After detailed analysis of the scenario in
telecommunication sector, the consultants have observed that
POWERGRID`s venture into telecom business is a viable
proposition.
Based on the report of the consultants, POWERGRID
is contemplating to build and provide infrastructure to the
National Long Distance (NLD) business and also take an equity
stake in the NLD business. The NLD operator would provide
switched long distance wires and data services. The preliminary
estimate of the network for the NLD Operations by POWERGRID calls
for installation of about 42000 km of optical fibre cable at an
estimated capital expenditure of more than Rs. 5,000 crores.
POWERGRID is planning to install around 14,000 kms of optical
fibre cable connecting 35 major cities. This will require an
estimated outlay of about Rs. 1,300 crores. POWERGRID has issued
a global invitation for selection of Joint Venture Partner to
facilitate establishment of the NLD Operations and have applied
for NLD license from Department of Telecommunications.