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Dvc To Ink Pact With Power Grid Soon For Optic Fibre Network

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BUSINESS STANDARD

The Damodar Valley Corporation (DVC) will soon be signing a memorandum of understanding (MoU) with Power Grid Corporation (PGC) to lay a optic fibre network along DVC's transmission and distribution network in eastern India against payment for the right of way (RoW).

A K Basu, secretary, DVC, said both corporations are pursuing the matter earnestly and signing an memorandum of understanding would the first step towards this direction.

"After the MoU, a global tender will be floated to scout for a strategic partner," Basu said.

PGC has been selected as DVC's partner as it is already carrying out similar projects in other parts of the country.

 

Building the OFC network would not call for investments from DVC, which has embarked on a 10-year plan to double power generation capacity.

"DVC is not in a position to fund such a project and will only provide the RoW. The project should add to DVC's revenues instead of capital outgo," Basu added.

However, the main commitment on the part of DVC would be to maintain the network as OFC demands high level of efficiency.

However, much of DVC's 5000 circuit kilometre network will not be able to carry OFC. Technically, only the lines carrying 220 kv and above are suitable for OFC lines.

"At present, DVC has only a 1200 circuit km network carrying 220 kv and above power. In the next 10 years, though, addition of 600 circuit km in this segment is on the cards," A K Sil, director (technical) of DVC, said.

Moreover, DVC will have a closed network against the open network in operation at present and this would give the project a big advantage.

DVC sources said however that the success of the project will largely depend on its timely completion.

Many others, including private sector behemoth Reliance Infocom, have already got a headstart in rolling out OFC networks at national and regional levels.

Delay in completion will erode viability to a great extent and undermine DVC's plans to maximise revenues.

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First Published: Jul 17 2001 | 12:00 AM IST

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