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SANKHYA VAHINI: In the Line of Fire

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VoicenData Bureau
New Update

Billed

as one of the many things that India would need to survive and

succeed in an IT driven world, Sankhya Vahini, the proposed

country-wide high-speed broadband data network, has run into

rough weather even before a take off. The project is a JV

between the Department of Telecom Services (DTS) and US-based

IUNet. As allegations of irregularities and lack of transparency

in the signing of the Memorandum of Understanding (MoU) with the

company fly in from within and outside the government, pressure

is mounting on the Vajpayee government to scrap the project.

Apart from many senior DoT officials, a number of senior members

of the Union Cabinet have objected to the nature of the MoU.

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Objectors and

the Objection

The

issue was first brought into focus by the Rashtriya Swayamsevak

Sangh (RSS), which alleged that not only was the Rs 1,000 crore

project an open invitation to the company to loot the country,

it was also a threat to national security. It also accused the

Government of indulging in unnecessary haste in clearing the

project. RSS is now adamant that come what may it will not allow

the project to take off.

If it was not for the

voices raised from other quarters including senior officials

from the DoT, the controversy over the project could have been

dismissed as just another manifestation of anti-liberalization

and anti-foreign investment stand of the RSS. The DoT officials

question as to why a similar venture proposed by VSNL and

British Telecom (BT) was not allowed three years back. One of

the objections then raised was that VSNL had chosen the MoU

route rather than inviting bids and that the project would end

up allowing back door entry to BT in the national long-distance

services sector. What has annoyed the DoT officials is the fact

that after sitting on a decision on the proposal for over two

years, the telecom commission asked VSNL to invite bids from

telecom majors for the selection of a partner. Thereafter, for

all practical purposes, the project was shelved. Their argument

is that there cannot be different rules for different people.

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Interestingly, the current

secretary of DTS, PS Saran, who was then member (services) of

the Telecom Commission, had opposed the VSNL-BT project to the

hilt. Now, as it appears, DTS itself did not find it worth to

follow the best practices and procedures to select IUNet for the

JV. What has intrigued officials is the fact that DTS chose to

partner with IUNet. They say that no company by that name even

existed when the MoU was signed in October 1999.

Moreover, if the VSNL-BT

project could have provided backdoor entry to the latter in

national long-distance services, how come the same could not be

true of IUNet, they argue. This apart, sources point

out a number of unreasonable clauses in the MoU heavily

favouring IUNet. For instance, IUNet has been given the complete

charge of purchasing the entire equipment required for the

project. This, according to sources, is surprising since the

Government owns 51 percent equity in the project.

The arguments put forward

by the opponents of the project seem reasonable when one looks

at the share holding pattern of Sankhya Vahini and the various

"incentives" contained in the MoU. While the DTS will

hold 45 percent equity, the ministry of IT will hold 2 percent

and educational institutes the remaining 4 percent.

IUNet, an organization

being set up by the Carnegie Mellon University of the US, will

hold 49 percent equity in the company. The MoU envisages free

real estate to Sankhya Vahini courtesy DTS. Besides, the

Department will transfer 10,000 kilometre of single pair of

optical fibre within 90 days of the agreement. No credible

arguments have been put forward by the Government with regard to

these provisions.

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