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BSNL to continue efforts for extra bandwidth

Even as the Carnegie Mellon University has withdrawn from the controversial Rs 10 billion Sankhya Vahini project, the government said on Friday that efforts to create extra bandwidth would continue with Bharat Sanchar Nigam Limited reviewing options, including looking for a suitable joint venture partner or going solo.

"Yesterday, IUNet communicated its decision to withdraw from the project. But as far as the project to create excess capacity is concerned, BSNL would implement it on its own or find a JV partner," Communications and IT Minister, Pramod Mahajan, said at Economic Editors' Conference.

Stating that the Carnegie Mellon's decision has been communicated to Department of Telecommunications and the prime minister, Mahajan said that the US University's withdrawal was not a "setback".

"It is not a setback. The government has not withdrawn from the project, it is a private company which has withdrawn," he said.

Mooted as a collaboration between IUNet Inc, a subsidiary of CMU and the Indian government, on expanding the bandwidth capacity for easy access to internet, the project was stated to be more beneficial for promotion of educational and research activities in the country.

Replying to queries on whether the delay in the proposed project had prompted the US University's withdrawal, Mahajan said that the DoT was even otherwise preparing a cabinet note in the wake of corporatisation of DTS into BSNL which would result in the latter's inclusion in the MoU signed between DTS and IUNet.

Earlier the proposed project had rocked the parliament for several days with various sections stiffly resisting the proposed project, alleging that government had not shown any transparency in the deal.

According to informed sources, the decision to withdraw from the project which held the promise to revolutionise data transmission, internet usage and other aspects of IT in India was conveyed on behalf of the CMU by Dr V S Arunachalam, to the Indian government.

Arunachalam is understood to have said that even almost two years after the cabinet approval, the project has not been sanctioned. "Two years in information technology is considered a lifetime. We, therefore, very much regret to inform you of our decision to withdraw," he said.

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