TC may approach Cabinet with Sankhya Vahini draft JV

TC may approach Cabinet with Sankhya Vahini draft JV
PRESS TRUST OF INDIA

NOV 5: Telecom Commission (TC) is likely to seek Cabinet's nod for including Bharat Sanchar Nigam Limited (BSNL) in the controversial Sankhya Vahini project following corporatisation of Department of Telecom Services (DTS).

The Commission, in its meeting early this month, considered the issue of revising the joint venture (JV) agreement to replace DTS by BSNL, which now stands as a public sector entity, sources said.

"This will be desirable especially since now it will be the new corporation rather than the department, which will be a partner in the JV, and since a transfer of government assets is involved," the Commission said in its last meeting held here last week.

Since BSNL has been incorporated as a company and it has a full-fledged board, therefore any new agreement especially involving equity participation would have to be considered by the new board of directors of BSNL, sources said.

"There has been a qualitative change in the situation and the department (Department of Telecom) may consider bringing the matter before the Cabinet for information or decision, as may be needed," the Commission, headed by DOT secretary Shyamal Ghosh, noted.

The Commission said the draft JV agreement was prepared in conformity with, and incorporating the decisions of the Cabinet, and had also been vetted by the Law Ministry.

"The commission felt that in the above situation it would not be proper or necessary for it to consider the matter or give any approval," it said. The Commission also pointed out that there was a public interest litigation (PIL) on the subject.

Earlier last month, the Delhi High Court had taken a serious view of the manner in which Centre took a decision to approve the controversial Rs 1,300 crore "Sankhya Vahini" project and directed it to produce all the relevant records relating to the contract.

A bench comprising Chief Justice Arijit Passayat and Justice D K Jain had said it was "concerned" over the manner in which the decision was taken by the Government to finalise the deal with US-based company IUNET, which was not even in existence when the memorandum of understanding (MoU) was signed in October 1998.

The court has directed Additional Solicitor General (ASG) R N Trivedi to produce the relevant files on November 23, the next date of hearing.

The direction came following the hearing of a public interest litigation (PIL) by an NGO, Telecom Watchdog alleging that the Government had entered into a deal with IUNET Inc, a subsidiary of Carnegie Mellon University (CMU) of USA for buying its technology, which was "very old".

The "Sankhya Vahini" project, aimed at establishing High Speed National Data Network (HSNDN), was finalised by the Government without calling global tenders, the PIL alleged.

The CMU and IUNET officials Raj Reddy and V S Arunachalam had sold "old technology" to India, while more advanced ones were available across the globe, the PIL claimed.