Centre set to derail Mamata's optic fibre project

Centre set to derail Mamata's optic fibre project
BHAVNA VIJ

NEW DELHI, MARCH 12: Railway Minister Mamata Banerjee's pet project to shore up the finance of Railways may remain just an illusion. Mamata had earlier announced that the ministry planned to raise Rs 700 crore by allowing private companies to lay optic fibre lines along railway tracks.

The Cabinet has questioned the very logic of the Railways taking up such a project, suggesting that they stick to running trains, and safety. With the Government focussing on disinvestment, the Railways have no business to get involved with ``non-core'' activities. ``Leave it to the private sector,'' the Cabinet reportedly told the ministry in a meeting last week. It also added if at all there was any need for a nodal ministry, why shouldn't it be somebody like the Communications.

The issue has been referred to a Group of Ministers (GoM) comprising Finance Minister Yashwant Sinha, Deputy Chairman of Planning Commission K.C. Pant, Information Technology Minister Pramod Mahajan and Disinvestment Minister Arun Shourie in addition to Mamata. The GoM is expected to give its recommendations by the end of the week.

The Railway ministry is hopping mad over the Cabinet's attempt to derail the optic fibre project. The ministry had hoped to get Rs 500 crore from the project in the year 2000-2001 but it got delayed due to bureaucratic tangles. Railtel Corporation, a company to oversee the project was finally set up in September, 2000. Incidentally, with Cabinet approval.

Railtel was supposed to lease the ``right of way'' along the railway lines to interested companies who could then lay down optic fibres, used for communication purposes. These lines, with very high capacity, could be used both, by the Railways and the company on a profit sharing basis. Though many companies had shown a keen interest, the delay apparently discouraged them.

``We had gone to the Cabinet this time only get clearance for induction of a strategic partner for Railtel Corporation. The Cabinet had no business raising doubts about our right to be in the business of optic fibres, especially since the Cabinet itself had cleared the project barely six months ago,'' said an angry Railway Board official.

Officials involved with the project said that the delay in starting the project has already cost the Railways dear. ``The state governments are giving right of way along the highways. Gas Authority of India Ltd (GAIL) has started leasing out right of way along their gas pipelines. Power Grid Corporation and Enron (having tied up with Maharashtra State Electricity Board) are getting into the business. Reliance Petroleum Ltd has tied with Oil India Ltd and is laying fibre optic cables. Railways, even if they get the clearance now, will be a late starter,'' an official complained.

But the Railways will have its advantages. ``Whoever wants to lease the right of way will have to come only to the railways. But in case of highways, he would have to go to different states for separate permissions. Railways would offer connectivity,'' he added.

However, the Railways fear that it would be difficult for them to do business, especially with so many stumbling blocks. ``Anyway nobody wants to do any commercial activity with the government,'' said another official. Officials at the Railway ministry also don't expect anything from the GoM since they feel that Mamata Banerjee would be marginalised in the Cabinet.