Sources associated with the process said BSNL has already made the draft for the board meeting and is waiting for consultation with legal advisors before finalising the draft. Presenting legal advisors' views will strengthen BSNL's decision to disqualify Motorola, a key query of the Minister, sources added. Sources added that the possibility of the entire tender being scrapped and initiating rebidding is remote.

Motorola was not the lowest bidder in the tender and its price of 69 dollars to MTNL [Get Quote] could not be compared to our contract in toto, as MTNL's was a much smaller contract and ours is huge and we also inserted many value added advanced features in our equipment contract, which were not included in the MTNL deal, said BSNL.

Motorola's disqualification for delivering 3G equipment was just one reason out of many, sources said. "If we get the legal advisors' opinion today, the board may even meet tomorrow. But otherwise we may hold it on Monday. Our legal advisors were earlier associated with the tender terms."

Whatever is the change in the tender terms, there is likely to be a reduction of up to Rs 4,000 crore (Rs 40 billion) from the original tender value of Rs 18,500 crore (Rs 185 billion), sources said, pointing out that when the contract was awarded, the dollar was ruling at Rs 44 and now it is Rs 41. There will be some gain to BSNL out of this rupee appreciation too, they said.

As for renegotiation with L1 bidder Ericsson, sources said the Swedish firm will be told to reduce the quoted price of 107 dollars a line to about 85 dollars. Asked what if Ericsson does not agree to this, they said, "the vendor knows its quoted price is under question. There is provision in the contract that L1 price can be renegotiated. We are sure they will see the reason and match our offer."

BSNL has not formally started any renegotiation with Ericsson. The proposal will then be taken to the BSNL board for endorsement where there are two members from Department of Telecom, and five members of BSNL, including the CMD.

While the post of independent directors whose terms have expired have not been filled up, one board seat from BSNL is also lying vacant. The board will submit the response to DoT secretary who will present it to the minister.

Raja had asked BSNL to look at 2G mobile telephony at present and also told it to consider asking L1 bidder Ericsson to reduce the per line cost to below $90 from its quoted price of 107 dollar. The minister had also asked BSNL to explain the reason for Motorola's disqualification.