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PowerGrid, APTransco plan telecom JV

Syed Amin Jafri in Hyderabad

The PowerGrid Corporation of India and Transmission Corporation of Andhra Pradesh have signed a memorandum of understanding to form a joint venture telecom company to diversify into telecom business.

The MoU was signed here on Tuesday in the presence of PowerGrid chairman-cum-managing director R P Singh and APTransco CMD P Ramakanth Reddy.

The Joint venture telecom company would build and maintain a state-of-the-art optical fibre network along with associated telecom equipment utilising APTransco's right of way and transmission and distribution infrastructure.

APTransco has already pre-selected PowerGrid as joint venture partner of the JVC for providing telecom services. APTransco, in association with PowerGrid, would take further action to select other joint venture partner for the JVC.

APTransco, in principle, would hold up to 26 per cent equity in the JVC and PowerGrid would hold 23 per cent. The balance equity would be held by JVC partner.

APTransco's investment in the JVC would be in the form of Right of way on its existing EHT transmission lines for stringing optic fibre cable network through specified route.

Both PowerGrid and APTransco would work together to select the third joint venture partner through international competitive bidding route.

Various activities such as negotiations with selected party and agreements related to JVC would be undertaken by APTransco in consultation and assistance of PowerGrid.

PowerGrid Corporation is planning to build optical fibre transmission network on 14,000 km of its 400 KV inter-state transmission lines, investing $1.3 billion.

The PowerGrid, in its quest to develop a national telecom network on its power transmission lines is exploring to enter into an understanding and form special purpose vehicle JVCs separately with state power utilities by interfacing its broadband network with that of the state utilities.

APTransco has strung optical fibre cable of 12 and 24 fibres over 1,500 km of its transmission lines. Digital voice/data transmission capacity with a bandwidth of 155 mbps equivalent to 1,000 telephone channels is commissioner as a part of APTransco broadband telecom system on this optical fibre system.

APTransco has the distinction of being the first state power utility to lay optic fibre cable extensively for internal communication needs for its expanding power network such as supervisory control and data acquisition system.

After meeting its own communication needs, APTransco proposes to lease out the spare optic fibres for the telecom business and earn additional revenues.

APTransco has an extensive Right of Way and physical infrastructure in the form of EHT lines and towers throughout the state. In line with the state government's commitment to promote information technology, APTransco proposes to utilise the right of way to provide the towns and mandals in the state with optic fibre connectivity.

This would help provide internet connectivity centres, videoconferencing and bank nets besides supporting the government's vital programmes such as distance education and telemedicine.

APTransco is laying 1,500 km of optic fibre cable running across 11 districts with drop facility at 20 important towns.

The PowerGrid network is proposed over its 400-KV interstate transmission lines interconnecting 34 major cities in the southern, western, eastern and northern regions. The subscribers on APTransco's communication network would have all-India connectivity through the PowerGrid network and also access to international highway through the gateways at Madras, Visakhapatnam and Bombay.

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