IVO of Finland has been selected as technical consultant, which would prepare feasibility report for the corporation's plan to diversify into telecom sector, PowerGrid chairman and managing director RP Singh said.We have forwarded the name of the consultant for World Bank approval and we expect to award the contract by the year end to the multinational firm, Singh said.

The consultant would work out modalities for Powergrid entering the telecom sector either by setting up a joint venture company or settle only for a partner, corporation sources said.

Singh said, the consultant had to submit the report within six months from the date of the contract being awarded.

IVO would also work out the tariff and other technical matters relating to the corporation going into the new area, the sources said adding PowerGrid wouldgo for government approval with a firm package for entering into telecom.

They said the consultant fee would also be paid by the World Bank that amounts to about three million dollars.

Asked about Powergrid's plan to lend its optical fibre network at the Itarsi-Jabalpur junction to Bharati Telecom for its basic telephony operations, Singh said We are still negotiating with the private company over the rental and other charges.

PowerGrid's existing transmission network throughout the country would provide an excellent opportunity to establish a backbone for national information infrastructure providing long distance telecommunication services, he said.

Such existing network provides a ready-made right-of-way for installation of overhead optical fibre ground wires for carrying high speed audio-visual and data signals, Singh said adding the telecom venture would prove profitable to the corporation.

Powergrid is at present operating and maintaining over 31,000 circuit kilometers (ckt.Kms) oftransmission lines and during the next five years this transmission network is planned to be strengthened by adding another 20,000 ckt.Kms.

The corporation, which has envisaged an investment of about Rs 13,000 crore during the Ninth Plan period for its identified ongoing and new schemes, is likely to see its operations into the telecom sector by the end of the next year, the sources added.