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Green pilots will help us identify the gaps between talk and action
Ajay Bhattacharya, administrator, USO Fund, Department of Telecommunications
Heena Jhingan
Wednesday, February 03, 2010
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DoT has decided to offer financial support from the USO Fund to telecom players using renewable sources of energy, to power their base stations in rural areas. What is the status on the scheme?
We are in the process of rolling out the pilots. Our intention is that at least one such site per state is taken up for this purpose. I believe it is on target in the sense that the processing is expected to be done within two to three months.

We are looking at setting up a 10 KW SPV panel in phase one USO sites and in some states, wherever feasible, we may consider solar and wind hybrid setup.

What amount from the fund has been set aside for these projects?
Money is not the real issue here. What we are saying is that we will meet a substantial part of the cost of deployment. We are in talks with the people, and trying to find out what will be the actual amount that will be needed. We are yet to arrive at a realistic figure. We all know that setting up a 10 KW solar panel costs about Rs 30-35 lakh, accordingly, the subsidy will be slightly less than that. I won't be able to say anything about the delivery schedules as it will be decided when we award the project. Timely reviews will be done for any other project.

Do you think it should be mandated that the operators should adopt at least some green measures?
I don't think there can be any binding on operators to adopt green or renewable energy sources. They will do so if they think it makes economic sense for them. That is the way to go, and that is the way it has been happening. One deterrent, most of the time, is the initial cost. If the capital cost is met or supported to some extent then there is an incentive for people to go green. We are not egging them to do that. We are making an effort to remove the basic bottleneck, which is the high initial capital cost.

The DoT (USO fund) has taken up this green thing to solve some of the constraints faced by operators. It is an issue of changing needs. We are all aware that people keep on talking, but the actual rollout has not been in the same spirit. These pilots have thus been conceived as there is a need to know the gap between talk and the actual practice. These will help us find out why operators are not rolling out green solutions in a big fashion.

As far as the idea of mandating is concerned, we are not getting into it. We are not the Ministry of Environment & Forests or the Ministry of New and Renewable Energy. Green is an omnibus term. Our focus is on removing hurdles that deter the growth of telecom, especially in the rural areas, which are mostly power-starved.

According to the latest data available, till now the total fund collected as USL is Rs 26,163.96 crore. However, only Rs 9,606.97 crore has been disbursed. What is being done to pump the corpus lying with the Center back into flow?
I do not agree with that. Accumulation or inflow of funds happen on a continuous basis, but the spending is in spurts. By the time one scheme gets over, the other may be still under consideration. These two things can never be precisely matched. So, the entire amount cannot be spent in one go. We have several schemes on the anvil that will take care of the problem largely.

Most of the operators allege that USO funds are inflexible, in turn, non-competitive. The telecom minister also realizes the need to amend the rules. As the administrator of the fund, what amendments would you recommend?
I would not like to comment on that because as far as the USO schemes under the current laws are concerned, we try to get feedback from the industry and try to incorporate their concerns. In every scheme, all the stakeholders are allowed to participate. People always have a big wish list, and it is not always possible to accommodate everybody's entire list.

Do you think there should be an obligation on rolling out 3G in the rural areas?
We have been supporting wireline services. Whether there should be an obligation on the 3G or not, will be decided by the licensing authorities.

Heena Jhingan
heenaj@cybermedia.co.in

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