DVC, a multipurpose power utility owned by three governments, aims to lay a optic-fibre communication network along its transmission grid, which covers 25,000 sq km in West Bengal and the former south Bihar. DVC has 5,270 circuit km of transmission line passing though industrial and coal mining centres like Asansol, Bokaro, Dhanbad, Durgapur, Jamshedpur and Sindhri.In addition to leasing bandwidth, the joint venture will be able to offer Internet services and other value-added services.

PowerGrid officials said DVC has given it the job of selecting a partner or putting together a consortium and setting up the new venture. "We will soon invite bids for the JV," a senior official of PowerGrid told The Financial Express.

DVC plans to hold an equity stake of up to 26 per cent and PowerGrid 23 per cent. The JV partner will hold the rest. The partner company or consortium should have at least one year's experience as a provider of either fixed-line access, Internet service, cellular service or data/ value-added services.

If the designated lead member of the successful consortium wants to hold more than 75 per cent of the private share, then only the lead member will be evaluated.

If the lead member holds less than 75 per cent, then two members of the consortium will be evaluated, provided that together they hold at least 75 per cent of the equity and separately 26 per cent, the official said. The project would be developed on build, own, operate and transfer (BOOT) basis.

DVC, PowerGrid scout for a partner for optic-fibre venture in East India The new company's right to lay fresh fibre optic cables on DVC's transmission network will end at the end of five years from the effective date or after completion of roll-out of maximum route length.

The JV company's right to operate the project will end after 20 years, although there will be a provision for extending the period.

After 20 years, DVC would have the right but not the obligation to take over the assets of joint venture at their book value.

A part of the capacity will be set aside for DVC's internal requirement, while the rest will be commercially leased either as dark fibre or as a high-speed backbone.

It would meet the bandwidth requirements of basic telephone services operators, cellular operators, paging service operators, Internet service providers, cable TV operators, corporate houses, public sector undertakings, banks, insurance companies, and financial intermediaries like stockbrokers.It would also provide state government agencies and undertakings support for real-time data flows that will help monitor project implementation and in effective disaster management.

DVC will not allow any interruption in electricity supply for setting up the project. So the private partner should have the technology to install optic fibre cable under line-line conditions. Off-line installation will be allowed only if it does not affect power supply.