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The digital revolution has thrown up another strange reality. The company that has been the most eager for private ISPs to happen has nothing to do with computing or the telecommunications industry.

It is the Powergrid Corporation of India Limited, the government owned power transmission company. The Rs 14.35 billion mammoth is the nodal agency for all power transmission lines across the country.

Obviously, it owns what every telecom company in the country envies:

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copper wires running into every place on the map.

PGCIL has already been using its gigantic power cable network to transmit its own communication.

Now it is keen on synergising this activity with the telecom business that it plans to enter. The focus would be to scale up its communication work and help build the 'national information backbone', the missing link between ISPs and smooth national connectivity.

Now it is in the final stages of selecting technology consultants for its new business.

It is in discussions with the World Bank to finalise a credit line of around $300 million for the telecom projects.

The consultants who are on PGCIL's short-list are Swedpower of Sweden, Tel IVO of Italy and LahemyerInt.

PGCIL Chairman R P Singh has been quoted as saying that the World Bank will be playing a key role in finalising new strategies.

A separate division of the PGCIL will handle the telecom business.

"This division is expected to generate additional revenue for the company. This can be then be ploughed back to increase the infrastructure capacity for the power sector,'' Singh hoped.

PGCIL is already in discussions with several state governments and telecom operators at the state level. Although, the telecom business will be a separate division, PGCIL may consider forming subsidiaries at the state level with equity participation from telecom operators and state governments.

The project would be carried out in three phases.

In the first phase, the state-run telecom company would chart out its telecom route in line with its plans to increase the transmission network. The additional capacity for optical fibres would be added on to the transmission lines as and when they are laid down.

PGCIL will be developing active bands for telecom operations and that will be done at very competitive prices, Sing claimed.

Internationally, most transmission and pipeline companies have got interests in the telecom business and have developed it as a downstream operation.

Singh revealed that the government has already given its approval to PGCIL's plans to diversify into the telecom sector.

PGCIL now includes in its 'article of association' its plans to get into the telecom business.

- Compiled from the Indian media

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