The task force has felt that selection of the company should be on the basisof percent share of net profit from the sale of leased line/bandwidth of theagency.

It has said that a two-stage bidding and selection process should befollowed. At the first stage, technical and financial capabilities of thebidder should be the deciding factors and at the second, the share in netprofit.

According to a task force report, the present tender terms are not sobeneficial as to attract private agencies. It said that the alternateoptions of using the right of way available from highway and other agenciesis much less expensive. It is also easier to lay OFC along the highwayrather than along the railway tracks.

The report said that since all transmission equipment were stipulated to beprovided and maintained for the Railways by the agency, the input capitalcost for the agency more than doubled for similar network along the highways.As per the present tender, the Railways only requires transmission networkto be put up and maintained by the selected bidder while the switchingequipment and its maintenance will be done by the Railways.

The transmission network consists broadly of two elements -- optic fibrebackbone and transmission electronics.

The maintenance of transmission electronics has to be done only at therailway stations where electronic switching equipment is to be maintained bythe Railways. The task force, therefore, felt that it would be convenientfor the Railways to maintain both transmission and switching equipmentitself as this would ensure better coordination and utilisation of manpowerwith the Railways.

According to the task force, the laying and maintenance of fibre is a moretedious job and this will be undertaken by the agency.

The Railways could provide identical PDH and SDH equipment in all the foursectors stipulated in the tender, thereby taking maximum advantage by way oftechnical uniformity and quantity discounts, as also minimum inventory ofspares.

The task force felt that this would facilitate training andinterchangeability of personnel since equipment in all railway sectors wouldbe identical.

It suggested that two pairs of fibres be laid along the railway track, onefor PDH transmission equipment and the other for SDH transmission equipment.The suggestions of task force, which was set up by Railway Minister MamtaBanerjee and comprises industry representatives besides officials, are inaddition to the changes sought at a pre-bid conference.

The Railways have floated global tenders offering `right of way' for layingOFC along the tracks in four sectors covering about 15,000 km. They are inthe process of revising the terms and conditions for tenders as suggested bythe prospective bidders.

The Railways are also awaiting the new policy for domestic long distancecommunications, which would be announced by the Central government on thebasis of recommendations recently made by the Telecom Regulatory Authorityof India. Based on the outcome of the present tender, action will be takento cover practically the whole of Indian Railways under the project.