To address the issue of deficiency of telecom coverage in remote areas, the Central Electricity Regulatory Commission (CERC) has allowed state-owned power transmission firm Power Grid Corporation of India (PGCIL) to offer its electricity towers to telecom companies. If PGCIL’s initiative becomes successful, it can be emulated by private transmission companies and electricity distribution companies, the CERC said.
PGCIL will bear the capital expenditure on the infrastructure changes to add telecom set up (about Rs 20 lakh/location). The money will be recovered from telecom operators. Revenue from the business, after meeting costs, would be shared on a 50:50 basis with beneficiaries of the electricity transmission system.
As per estimates, annual revenue from this initiative is seen to range between Rs 68 crore and Rs 324 crore, subject to the number of towers leased out. Monthly rentals are expected to range between Rs 40,000 and Rs 50,000 per month, which is 12-18% lower than the average industry rates. Read More
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