WBSEB aims to lay an optic-fibre communication network along its transmission grid covering the entire state barring Kolkata and adjoining areas, which are serviced by CESC Ltd. It has 4,870 circuit km of high tension transmission line (132, 220 and 400kv) passing through industrial and coal mining centres like Asansol, Durgapur and Raniganj. However, the majority stakeholder will assess the potential areas from the business point of view.

In addition to leasing bandwidth, the joint venture will be able to offer Internet and other value-added services.

WBSEB has already pre-selected PowerGrid as a partner for the project and has asked PowerGrid to prepare a "draft document of request for selection of the third partner".

"We will submit the draft to WBSEB within 15 days. It will examine the terms and conditions and offer bidding for a third partner," a senior PowerGrid official told The Financial Express. A partner or a consortium will be selected for setting up the new venture.

WBSEB plans to hold an equity stake of up to 26 per cent and PowerGrid 23 per cent. The joint venture partner will hold the rest.

However, the Bengal government has requested that three per cent equity be allocated for West Bengal Electronics Industry Development Corp Ltd (Webel) in the project. "We are ready to accommodate Webel and offer the equity from our 23 per cent," the PowerGrid official said.

Since WBSEB has no transmission line within Kolkata and other command areas of CESC, the joint venture company may consider laying underground lines for the project from a suitable point.

WBSEB, PowerGrid to seek private partner for optic-fibre venturePowerGrid has already tied up with government-owned Damodar Valley Corp for a fibre-optic project with private sector participation.

The partner company or consortium for the Bengal project should have at least one year's experience as a provider of either fixed-line access, Internet service, cellular or data/value-added services.

If the designated lead member of the successful consortium wants to hold more than 75 per cent of the private share, then only the lead member will be evaluated.

If the lead member holds less than 75 per cent, then two members of the consortium will be evaluated, provided that together they hold at least 75 per cent of the equity and separately 26 per cent, the official said.The project would be developed on build, own, operate and transfer (BOOT) basis. The new company's right to lay fresh fibre optic cables on WBSEB's transmission network will end at the end of five years from the effective date or after completion of roll-out of maximum route length.

The joint venture company's right to operate the project will end after 20 years, though there will be a provision for extending the period.After 20 years, WBSEB would have the right but not the obligation to take over the assets of the joint venture at their book value.

A part of the capacity will be set aside for WBSEB's internal requirement, while the rest will be commercially leased either as dark fibre or as a high-speed backbone.

It would meet the bandwidth requirements of basic telephone services operator, cellular operators, paging service operators, Internet service providers, cable TV operators, corporate houses, public sector undertakings, banks, insurance companies, and financial intermediaries like stockbrokers.It would also provide state government agencies and undertakings support for real-time data flows that will help monitor project implementation and in effective disaster management.

The private partner should have the technology to install optic-fibre cable under line-line conditions. Offline installation will be allowed only if it does not affect power supply.