Bharat Sanchar Nigam Limited (BSNL) has provided a final estimate of Rs 32.41 billion to the Department of Telecommunications for installing mobile towers in nine states affected by the left wing extremism (LWE).

Further, BSNL has informed the department that it will take 12 months for the operator to roll out the project from the date the estimates are approved. Earlier, in June 2013 the cabinet had approved setting-up of telecom towers in areas impacted by LWE. The move is aimed at providing adequate communication set-up to the security forces ensuring greater security and coordination amongst security personnels.

The final estimate for the project includes cost for procuring equipment from vendors which is pegged at Rs 26 billion and the remaining amount for the equipments, services and project management cost to be incurred by BSNL. The operator will be responsible for establishing towers in the states of Madhya Pradesh, Chhattisgarh, Andhra Pradesh, Bihar, Jharkhand, Maharashtra, West Bengal, Odisha and Uttar Pradesh.

Originally, the planned telecom infrastructure was to be put in place by June 2014, however the project was delayed owing to differences over actual bids and project costs approved by the previous government under the United Progressive Alliance.

The initial tender floated by DoT attracted bids from only three players. Subsequently, the Telecom Commission asked DoT to re-tender the project with expectation of more number of participants compared to the three companies that submitted bids earlier. However, the fresh round of tender held by DoT attracted bids from two players, Vihaan Networks (VNL) and Himachal Futuristic Communications Limited (HFCL). Following the tender, VNL emerged as the lowest bidder and would be awarded 70 per cent of the total contract. HFCL will be assigned 30 per cent of the contract if it agrees to supply equipments at price quoted by VNL.