Maharashtra eases norms for laying optic fibre cables

Sanjay Jog

Mumbai, Nov 20: The Maharashtra government, in a serious bid to take on its counterparts namely Karnataka and Andhra Pradesh, has modified its policy for laying opitc fibre across the state by relaxing the condition of offering five per cent cashless equity to the state undertaking by the company assigned for this job. Instead, the government has proposed that the company would be also offered an option of paying a certain amount at a time to the government.

However, the government has maintained its decision to provide sops with regard to the stamp duty and registration fee to the companies interested to bid for laying optic fibre cables. State government sources told The Financial Express on Tuesday that the state Cabinet meeting slated for Wednesday would take up the issue for its clearance. The government has proposed to lay the optic fibre cables over 900 km across the state within a year.

Sources said that the government in its information technology and optic fibre networking policy declared in early 1999 had made it mandatory that the company would have to give a five per cent cashless equity to the government undertaking. However, the the state-run Gas Authority of India Limited and various other companies took their objection and expressed inability to provide five per cent cashless equity.

The sources said as per the stipulated central government norms the condition has not been laid down for offering five per cent cashless equity by the company. "The union government and the state governments will allow free right of way facility with no charge to access providers to lay optic fibre network along national highways, state highways and other roads. Only a notional restoration fee will be charged for providing this facility," the government sources added while quoting the central guidelines on laying of optic fibre cables.
The company would have to pay one per cent of the normative investment to the government up to May 31, 2002, 2 per cent up to May 2003 and thereafter 3 per cent. In rural areas, it has to pay Rs 5 lakh per km, Rs 10 lakh in municipal areas and Rs 15 lakh per km in municipal corporation areas to the government at a time.