``We are talking to various private sector companies and memoranda of understanding with regard to providing PGCIL's optical fibre network for telecommunication systems would be signed soon,'' PGCIL chairman and managing director RP Singh said.

The corporation is likely sign an MoU with TCIL on Monday to be followed by other companies, Singh told PTI. PGCIL would be creating the necessary infrastructure for the telecom while the telecom companies would be using this network to provide services in the country, he said.

The corporation is planning to link six metros -- Hyderabad, Bangalore, Chennai, Mumbai, Calcutta and Delhi -- in the next twoyears with an estimated investment of Rs 1,200 crore.

Company sources said theoptical fibre-based backbone would be used by private companies for providing the Internet connections mainly, however, the usage could be extended for basic as well as mobile telephony.

The corporation has already created a third of the infrastructure facilities required for telecom services in the country while the remaining was close to finalisation.

Asked whether PGCIL would explore possibility of setting up a joint venture company as part of its diversification plan in the telecom sector, he said, ``We can have a separate holding company with participation from Videsh Sanchar Nigam Limited and other private companies in the future if this new area proves commercially viable to us.''

In case of a holding company, PGCIL would have separate accounting system that will not affect transmission utilities core business of operations, he said.

PowerGrid is operating and maintaining about 35,000 circuit kms of transmission lines and its gross block of assets stand at Rs 8,806 crore.

The corporation hasalready shortlisted IVO of Finland as its telecom consultant and is likely to have the multinational company in place by June this year.

Multilateral lending agency World Bank would be funding the telecom consultant fees of about Rs 11 crore, the sources said.

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