While submitting technical and financial reports here last week, WorldTel was asked to furnish more details about cash flow as well as economic viability of the project, according to highly-placed sources.

The project aims at putting Gujarat ahead of Bangalore and Hyderabad in IT networking, if not in software. While WorldTel has the experience in telephony in countries, Reliance Telecom is busy laying its network in Gujarat.

When contacted, minister of state for IT Bimal Shah told The Financial Express: "WorldTel did submit two reports in which they have made known their keenness to rope in Indian partners in the JV project. But, we have asked for certain modifications in the financial report."

He said WorldTel did not disclose the name of the prospective partner as the feasibility report was yet to be presented. In the MoU too, he pointed out, there was provision for such a partnership. WorldTel has to bring in 74 per cent equity, alone or in association with other firms.

Shah did not elaborate saying that WorldTel would be anyhow submitting a detailed report soon. However, he exuded confidence saying, "we would sign the joint venture agreement within a month, if it is found perfect (with a stress on the word `if')."

He said the debt-equity ratio and other details would be finalised after WorldTel submits the feasibility report. Comments were not available from either Reliance Telecom or WorldTel.

As per the MoU signed between Gujarat chief secretary LNS Mukundan and WorldTel president Sam Pitroda in February in pursuance of the state's IT policy announced in October last, the state government would provide 26 per cent of the equity in the form of land and other infrastructure facilities and WorldTel and its associates would make available the remaining 74 per cent of the share.

The project envisages laying a 1,700 km-long optic fibre network to link the state capital with 26 district towns in the first phase and 220-odd block (tehsil) headquarters in the next phase, besides creating 250 `community internet centres' (CICs) or IT kiosks like STD booths.

Meanwhile, Gujarat has floated a special purpose company, Gujarat Informatics Ltd (GIL), with chief secretary Mukundan as its chairman.Shah said that seven companies had submitted their bids against global tenders issued two months ago for setting up the Rs 100-crore InfoCity Project.

The companies are Larsen & Tourbo, Creative Choice (Florida), IVR Constructions (Hyderabad), Bhavya Infrastructure & Development Ltd, Labh Construction and Infrastructure Ltd, Euro Asia and Desai Floriculture and Infrastructure Ltd.