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30 January 1998

ADB loan offer haunts DoT

Navika Kumar  
NEW DELHI, Jan 29: The specter of the Rs 400 crore Asian Development Bank (ADB) loan continues to haunt the DoT even two months after the department turned down the loan in November last. The loan which was meant for setting up rural phones based on wireless in local loop (WLL) technology has almost become a bench mark based on which the DoT is now referring to all tenders relating to WLL.

The Telecom Commission, late last week gave clearance for procurement of 25,000 lines for urban areas based on the recently cleared frequency for WLL technology based on Digital Enhanced Cordless Telephony. The tender is being floated after the Defence Ministry recently cleared the frequency of 1880 - 1900 MHz for use by the DoT for communications.

The DoT is moving very cautiously especially after the ADB fiasco which met with severe criticism. This is evident from the minutes of the Telecom Commission meeting which state that for the new tender "technology should be a proven one under Indian conditions andincorporation of conditions (in the tender) regarding provenances of technology in countries abroad as in the case of the ADB tender, should be avoided."

What is surprising is that despite the Commission's clearance to using 60 per cent of total rural networks on WLL technology, in November last year, while allowing only 40 per cent to be based on the older Multiple Access Rural Radio (MARR) technology, doubts about the provenness of the WLL technology continue to dog the DoT with opinion on the issue dividing the officials of the department.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.



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