Decade later, OFC net for Army not complete, faces cost overrun

Vijay Mohan

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Tribune News Service

Chandigarh, January 5

Over a decade after a dedicated optical fibre cable (OFC) communication network was approved for the defence forces, the project for the Army and Navy is yet to be completed, resulting in a three-fold cost overrun.

In December 2009, the Cabinet Committee on Infrastructure had approved the project, to be implemented by Bharat Sanchar Nigam Limited and Mahanagar Telephone Nigam Limited, at a cost of Rs 9,175.16 crore.

The Air Force component of the project was to be completed as per schedule by June 2010, whereas the Army and Navy component, costing Rs 8,098 crore, was to be completed by December 2012.

The cost for the Army and Navy component has now been revised to Rs 24,664 crore, for which financial approval has been accorded. It is expected that the project would take another year or so to be complete. In addition to equipment and other paraphernalia, the project involves laying 60,000 km of OFC.

In addition to budgetary allocations and technical issues in finalising some tenders, the complex nature of the project, limited working season in remote and high-altitude areas and difficult terrain in north and north-eastern sectors have been cited as reasons for the delay.

As far as funding is concerned, the budgetary estimate of Rs 4,500 crore for 2018-19 was cut to Rs 2,500 crore in the revised estimates and the actual spending was Rs 1,973 crore. The remaining Rs 527 crore had to be surrendered. For the current 2019-2020 fiscal, the budget estimate of Rs 4,725 crore fiscal is proposed to be enhanced to Rs 8,000 crore, but only Rs 2,627 crore could be spent till October 2019, according to official information.