December 02, 2008

PGCIL to lease bandwidth for TV

BS reported that Power Grid Corporation of India is planning to offer bandwidth on its fiber optic network to entertainment companies for the first time.

The report cited a PGCIL official as saying that "We plan to enter the entertainment space with a joint venture in Andhra Pradesh. We are talking to two private companies which will actually roll out the business. The move is aimed at leveraging our fiber optic network. Also since the rate of return on investment in our core electricity transmission business is fixed at 14%, we hope to garner greater revenues from other businesses."

PGCIL has a 20,000 kilometer long fiber optic network and leases bandwidth to all major telecom players like Bharti Airtel, Reliance Communication and BSNL. It is also planning to rent out its over 20,000 transmission towers to cellular and entertainment companies.

PGCIL has recorded revenues of INR 125 crore from its telecom business in 2007-08 up by 62% YoY as against INR 77 crore in 2006-07. Mr RP Singh CMD of PGCIL said that "We plan revenues of around INR 300 crore from our telecom business by 2010."

PGCIL owns and operates the bulk of India’s inter state power transmission network and transmits about 45% of the power generated in India.