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Govt approves Rs 5,503 more for BSNL to establish defence communication network

Posted on: November 11, 2011


  • State-run BSNL may get an additional Rs 5,503 crore from the Department of Telecom to establish an alternate communication network for defence services, enabling the vacation of spectrum by the Armed Forces.
  • The budget estimate approved by the Cabinet Committee of Infrastructure (CCI) for this purpose in December, 2009, was Rs 8,098 crore. The total cost of the project, including two years’ maintenance support by BSNL after the network is fully integrated, is Rs 13,601 crore, according to sources in the DoT.
  • Thus, the additional impact on the estimated cost of the project would be Rs 5,503 crore, inclusive of all duties and taxes and two years’ maintenance support, over-and-above the Rs 8,098 crore expenditure earlier approved by the CCI, they added.
  • As per the CCI approval, the project was to be implemented in 36 months (completion by December, 2012). However, the timeline is to be decided afresh because of delays in implementation.

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