BSNL to offer 90% discount on leased line tariffs for e-governance projects

Posted: Wednesday, Jan 26, 2005 at 0000 hrs IST
Updated: Wednesday, Jan 26, 2005 at 0000 hrs IST

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Kolkata, Jan 25: Bharat Sanchar Nigam Ltd (BSNL) has decided to offer 90% discount on the existing tariff rates for two Mbps leased circuit to state governments for the state-wide area network (SWAN).

The normal tariff for two Mbps leased line depends on the distance. For example, for distance between 100-200 kms the tariff is Rs 9.5 lakh, 400-500 kms Rs 21.9 lakh and for more than 500 kms it is Rs 22 lakh. The discount will be offered for the 22 e-governance mission mode projects in the states which have been identified by the national e-governance action plan.

Telecom ministry sources said that BSNL’s tariff discount came after several rounds of meeting between senior executives of BSNL, officials of the Department of Telecom (DoT) as also officials of state goverments.

In a letter to all the chief general managers of telecom circles, Anand Khare, Jt DDG (Commercial) conveyed BSNL’s decision that the discount would be applicable to the present tariff of Trai for circuits between state capital and district headquarters and block headquarters earmarked for the e-governance project.

“In case Trai’s tariffs are revised downward, a minimum discount of 25% on the revised Trai tariff or the existing rates as above, whichever is lower shall be offered,” said the letter.

GD Gautama, IT secretary, West Bengal, said, “We have to look at BSNL’s offer. But the lower bandwidth price is essential for the spread of e-governance among the masses.”

BSNL’s offer of heavy discount to the states is based on two conditions. First, for at least three years, BSNL will be the only bandwidth supplier to the state for the project which will also be provided an additional bandwidth for expansion, if any. And secondly, the state government and its local bodies will not charge any fees for providing the right of way to lay cables across the state. To avail of the discounted rate, state government departments will have to give an undertaking to BSNL that the network will be used for e-governance alone and will not be exploited commercially. The letter also said, “Considering the importance of the project [NEGAP], extent of business opportunities, valued relationship with state governments and advantages in terms of waiver of Right of Way and reinstatement charges, the competent authority of BSNL has decided to offer following discounts as a very special case.” At present, BSNL gives a maximum discount of 30% for leased circuit used by state government departments for...

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