DoT sets up seven focus groups

The DoT has been concerned about the low level of actual FDIs into the country despite large scale approvals granted by the Foreign Investment Approval Board FIPB. As against an approved level of Rs 3,341 crore, actual inflows of FDI were only Rs 265 crore till April, 1998 in the filed of basic services. In the field of cellular services, the FDI inflows were to the tune of Rs 800 crore as against as against an approved level of Rs 3,325 crore.

On the legal front also, the picture is rather grim for the DoT. The Department is currently involved in several legal cases with the DoT on one side and the private service operators on the other. Some of the prominent cases include the ongoing cases with Himachal Futuristic Company Ltd HFCL and the RPG group. In the field of cellular services, the DoT is involved in litigations with JT Mobiles, Essar, Koshika and Modis. In the field of equipment purchase for the DoT8217;s own network, the Department has against it at least 35 to 40 cases pending in various courts.

The new focus groups are aimed at a more close watch and a coherent planning mechanism for some of these pending cases where often different branches within the department have been working in a rather disjointed way.

The focus group dealing with basic services while keeping a close watch on the execution of the existing companies which have already signed the Licence Agreements and their roll-out plans as well as formulation of the norms for the next round of bidding.

Procurement has also been an area where the DoT has faced a lot of flak in recent times. The procedure for a normal procurement of new equipment is so long and convoluted that it often takes the Department two to three years to finalise the specifications for these equipment, another six months to a year to finalise the tender document, and anything between six to 18 months to finalise the winners in a tender and notifying the quantities that they have to supply. In the mean time, with the currency fluctuations in the international market make the prices at which bidders had quoted their tenders so unremunerative that the DoT is left arguing their case with the equipment manufacturers. This has been the case in the Wireless in Local Loop tender as well as the tender for switching systems.

On the rural telephone front too the DoT has had an adverse performance over the last few years. This year in fact, after fixing an ambitious target of 85,000 villages to have Village Public Telephone VPTs during the current year, the DoT has scaled down the target to 45,000. The Department also received adverse exposure for cancelling the 36,000 VPTs project for eastern UP allegedly owing to MNC pressure who had lost out in the tender.

The move to set up these focus groups has evoked mixed reactions within the DoT. Sources in the DoT say that the Telecom Commission already has secretary level officials heading the various wings 8211; finance, services, production and technical- each supported by an army of officials of the ranks of advisers and Deputy Director General DDT and senior DIGS equivalent to additional and joint secretary level respectively and the fresh move may result in duplication of work.