Mahanagar Telephone Nigam Limited (MTNL) has not been able to pursue its plans to upgrade its 2G and 3G networks in Delhi and Mumbai circles as the Department of Telecommunications (DoT) is yet to clear its network expansion budget worth Rs 10 billion. Due to the delay in the approval of the funds, MTNL has been unable to finalise advance purchase orders with Nokia Network, which had emerged as the lowest bidder, in January 2014, for supplying 2G and 3G equipment in both the circles to MTNL.

Consequently, MTNL has requested Nokia Networks to extend the validity period of the bid. Under the tender norms, a bid is normally valid for six months.

As per the order, Nokia Networks will supply 2G and 3G systems along with radio access devices and intelligent network systems in the Delhi and Mumbai circles for MTNL’s 1.6 million-line GSM network.

Earlier, the state-run telecom operator had asked the government for funds of Rs 20 billion for meeting its capital expenditure costs including Rs 10 billion for GSM network expansion and two tranches of Rs 5 billion for landline and broadband network expansions over a period of three years.