Bombay Gas Cablecom Pvt Ltd (BGCPL) the 50:50 joint venture between the S K Jalan group and World Tel chief Mark Mascarenhas to exploit the Mumbai gas pipeline for cable television, telephony and other value-added services "" may go up in smoke. Mascarenhas has alleged that Jalan had made attempts deprive him of equal control of the company.
Mascarenhas alleged in the Bombay High Court last month that the Jalan group was trying to create third-party rights in the gas pipeline project, which could only be exploited by the joint venture company, according to the agreement with Bombay Gas Company, which owns the pipeline spread over south of Mahim up to Colaba.
Bombay Gas had some time back agreed to grant an exclusive licence to BGCPL to exploit the idle gas pipelines as host to the information superhighway.
The cost of the project is estimated at Rs 40 crore, as it is to use state-of-the-art technology for the information superhighway "" compatible with the gas also passing through the pipeline. The method has been tried out without success in the West.
The BGCPL had carried out a pilot project earlier this year for Mahanagar Telephone Nigam Ltd (MTNL) near Mahim in Mumbai at the cost of about Rs 65 lakh to show that the idle gas pipelines can be an ideal host to fibre optics.
In an order of August 9, the court, after being moved by Mascarenhas, restrained the Jalan group and its associates from creating any third-party rights in respect to the gas pipeline project. The next hearing in the arbitration is scheduled for next month in London. S K Jalan confirmed to Business Standard that the Mumbai gas pipeline project for cable TV and telephony had run into trouble. However, he added, we will come to terms and thrash out matters across the table in London sometime next month when the arbitration will take place.
Corporate sources said the Jalan group had been trying to create third-party rights in the project and had reportedly held talks with a foreign cable TV distribution network and a joint venture telecom services company. Contacted by Business Standard, Iqbal Malhotra, one of the directors of BGCPL, neither confirmed nor denied it.
The project, if it has to go forward, involves large investment and with the injunction granted by the Mumbai High Court, sources say, it is unlikely that any third party will come forward with funds.
