Speaking to The Financial Express, PGCIL chairman and managing director RP Singh said that out of the four bidders, one will be appointed as a consultant for assisting PowerGrid in going ahead with its Rs 1200 crore telecom optical fibre project.Singh said that the bids were opened on Monday and are likely to be finalised by the end of January.

The consultant will do a market survey, assist the corporation in designing the whole network including the routes along which PowerGrid will lay fibres.After deciding on the network, the consultant will then decide on the specifications of the optical fibre transmission equipment including the optical fibre cables and the terminal equipment, required for execution of thisproject.Singh said that the World Bank will undertake as much as 60 per cent financing of this project, with the cost of consultancy being Rs 12 crore.

Even the Department of Telecommunications (DoT) has asked PowerGrid to specify its exact plans of laying fibres along with the routes and the capacities it plans to put up.

Singh said that his company has worked out a three-phased strategy for entering the telecom business.

In the first phase, terms of reference for the consultant would include cost-benefit analysis of PowerGrid's entry into the telecom business and will also work out the `opportunities and threat' in this sector along with the scope of expansion in this business.

The consultant will be given four to five month's time to submit its report, following which PowerGrid will approach the government with its proposal.The terms of reference in the second phase include preparation for bid documents, contacting the final customers and framing of strategies for execution of the job and inthe final phase, the job would be executed.As part of its diversification programme, which has been approved by the government, PGCIL intends to install a hybrid system of optical fibre cable and high-capacity microwave along with enormous transmission grid and leasing out the network to telephone companies. The proposal is to lease its facilities to the DoT, VSNL, private telecom operators offering basic and cellular services and cable television networks.Besides, PowerGrid is also exploring various options regarding operating the network. Different models are being studied for going in for mixed business of band width leasing and full business in certain areas or go in for total business.