The Cabinet has approved a project to install 2,199 telecom towers in the naxal-affected areas at a cost of Rs 35.67 billion. The towers would be deployed in Andhra Pradesh, Bihar, Madhya Pradesh, Chhattisgarh, Jharkhand, Maharashtra, Odisha, Telengana, Uttar Pradesh and West Bengal. Bharat Sanchar Nigam Limited (BSNL) will execute the project work while the Universal Service Obligation Fund (USOF) will finance the project. VNL and Himachal Futuristic Communications Limited will supply the telecom equipment for the project.

The Cabinet had earlier approved the project cost of Rs 30.46 billion in June 2014. However, BSNL had submitted a revised cost of Rs 35.67 billion as the scope of project was modified and on the basis of bids submitted by vendors for supply of the equipment. The revised project cost is expected to meet BSNL’s capex requirements for mobile networks in the 1,836 sites and opex costs for 2,199 telecom sites over a five-year period. Subsequently, the Telecom Commission approved the revised project cost and sent the proposal of revised project cost to the Cabinet for its approval.

The commission had also sought approval for transfer of mobile network assets created in the Naxal-affected areas to BSNL for ensuring continuity of GSM coverage after the USOF stops funding the project after five years.