Central Government has approved an additional Rs.5,236 crore for the Defence Optical Fibre Cable network, which will provide a communications backbone for the armed forces.
According to an official release here, the Cabinet Committee on Infrastructure approved the enhancement of budget of the project by Rs.5,236 crore for laying of alternate communication network for defence services over and above Rs.8,098 crore already approved by the CCI.
The cost estimate of the project escalated by due to change in specifications and other requirements emanating from the user.
The network will be implemented by Bharat Sanchar Nigam Limited (BSNL) in 36 months.
The need for such an exclusive OFC is strategic since all the three armed forces require a robust communications network. A dedicated and highly secure state-of-the-art OFC network for the Army, Navy and Air Force will enable improved voice and data services and boost homeland security as well.
The $1.3 billion OFC proposal envisages a network to be laid out over 60,000 km to provide connectivity for 129 army, 162 air force and 33 navy stations. In a reply to the Parliament, Defence Minister AK Antony has indicated that this allocation is in addition to the roughly $ 2 billion approved for the Defence forces’ communication network in 2009. Antony added that the alternative network will be implemented to facilitate vacation of spectrum by the Defence services.
The Union Cabinet had approved the roughly $ 2 billion plan to build an alternate optic fibre cable (OFC) network for the Defence services in December 2009. However, the state-owned BSNL, to whom the project was awarded, overshot its budget for building the alternate communication networks in 2010 by a huge 50%. BSNL had sought an additional funding of over $ 1.19 billion from the Centre for the same.
In April 2011, BSNL had indicated that the vacation of spectrum by the defense forces will be delayed since it was finding it difficult to undertake the project because of the sharp escalation in costs. BSNL could not provide any explanation for overshooting its budget besides stating that the additional conditions put up by the Defence authorities have escalated the cost.
According to a MoU between the Defence and Telecom ministries, the Armed forces agreed to vacate portions of radio waves depending on the progress of the alternative network. To construct the OFC network, BSNL was appointed as the nodal agency.