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DTO to divide Rs 120 crore project between three bidders 

Neeraja Kumar  
New Delhi: The Department of Telecom Operations (DTO) has decided to split the Rs 120 crore pilot project for installing 20,000 rural fixed lines in some selected pockets in each circle, between LG-IC, and the Hindustan Teleprinters Limited (HTL)-Motorola alliance. LG-IC, which had quoted a price of Rs 60,000 per line, had emerged as the lowest bidder (L1), when the tenders for this project were opened last week. Now, the other bidders - HTL and Motorola - have also been given the option of providing the lines at the price quoted by the L1. Now on the basis of weighted average, DoT has awarded the contract of providing 10,000 lines to LG and the rest to HTL and Motorola, who have a strategic alliance. According to sources, the lines will be provided by October 2000, if the order is placed in August.

Meanwhile, last month, DoT had also invited tenders for a much bigger project of setting up 6 lakh fixed lines for rural telephony, which will also be based on the Wireless in Local Loop (WLL) technology. The last date of submission of the bids for this project is August 17. On Friday, the Minister of Communications, Ram Vilas Paswan held a detailed meeting with potential vendors of the WLL technology for this particular project. The meeting was convened to review the programme for induction of WLL in rural areas. Paswan sought a firm commitment from the vendors for procurement of the new equipment in a time-bound manner for the WLL system, which is likely to be inducted by the DTO for installing Village Public Telephones (VPTs).

In the meeting, Paswan announced a definite time frame for tendering, based on which, HTL and Motorola indicated that if the advanced purchase order is issued by November 2000, it will be possible for the two companies, to supply 1.5 lakh lines each. Officials of the two companies also said that they have the capability to provide 1 lakh lines each by January 2001. Of these, 30,000 lines each can be supplied by November/December this year and 40,000 lines in January 2001. Escorts Communications, which has a tie-up with LG IC, indicated it can supply up to 2 lakh lines from December to March.

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