NHAI has shown interest in the nationwide rollout of optical fibre networks along major highways under the PPP model. With a vast highway network spanning 146,000 kilometers, the total investments needed could be over INR 35,000 crore.
Nov 04, 2024
The National Highways Authority of India (NHAI), under the PPP model, has plans to lay down its own optical fibre cable (OFC) network, along the major highways. The strategic decision is aimed at building and enhancing the infrastructure for barrier-free tolling and smart highways, besides enabling leasing out of excess network capacity for commercial uses.
With a vast highway network spanning 146,000 kilometers, NHAI’s optical fibre cable (OFC) infrastructure will surpass the comparable networks established by RailTel and Power Grid Corporation of India Ltd (PGCIL) both in scale and reach, positioning it to manage the increasing data demands across the country. Though the exact cost of the planned OFC network will have to be determined, but if the entire existing NHAI network is to be converted to digital ways, the total investments needed could be over INR 35,000 crore.
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RailTel has used the track network of railways to lay 62,000 route km OFC duct while PGCIL arm Powergrid Teleservices owns and manages a network under the brand name PowerTel. PGCIL has an overhead optic fibre network using optic ground wire on power transmission lines and is offering transmission towers for mobile communications. Both PGCIL and RailTel had a head-start in laying of OFC – both started the venture two decades ago –, NHAI’s facility would enable expanding broadband and other telecom services into more parts of the country.
NHAI plans to develop its network through a public-private partnership (PPP) under the Build Operate Transfer (BoT) model. The network rollout will occur in phases, with bids being solicited in packages. Each successful bidder will enter into a separate concession agreement for the respective package. The project will be managed by National Highways Logistics Management Ltd (NHLML), a subsidiary of NHAI.
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NHLML has called for bids from consultants to provide financial and legal advisory services, as well as assistance in modeling and structuring the projects for implementation under the BoT framework. The deadline for submitting bids from consultants and institutions is December.
Earlier, NHAI had announced plans to build approximately 10,000 kilometers of optical fiber cable (OFC) infrastructure nationwide. Pilot routes for the Digital Highway development were identified, including 1,367 kilometers along the Delhi-Mumbai Expressway and 512 kilometers on the Hyderabad-Bangalore Corridor. Newer highway and expressway sections are being designed with dedicated utility corridors for OFC installation, which will support the future rollout of 5G networks in the region.
