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Tower expansion project in the north-east may be impacted by miscalculation of project cost

March 10, 2014

A miscalculation in the estimated project cost for expanding telecom tower infrastructure in the naxal-affected nine states in the north-east may be delayed due to wrong estimates by the Department of Telecommunications.

Bharat Sanchar Nigam Limited (BSNL), which is responsible for implementing the project, has brought this “arithmetical error” to DoT's notice. According to BSNL, there is a difference of about Rs 7.89 billion between actual requirement and the project budget approved by the Cabinet Committee of Economic Affairs. The operator has discovered an arithmetical miscalculation in annual maintenance contract estimates, omission of cost of certain components and revision of revision of VSAT bandwidth charges.

Currently, the project is estimated to cost Rs 30.46 billion, however, according to BSNL, the government needs to make additional provision of Rs 7.89 billion for the project.

DoT is examining the discrepancies identified by BSNL to ensure speedy roll out of the project.

 
 

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