NHAI plans nationwide optical fibre network – Infrastructure News

The National Highways Authority of India (NHAI) is planning to lay down its own optical fibre cable (OFC) network, along the major highways under the public private partnership model, according to official sources. The move is aimed at building the infrastructure for barrier-free tolling and smart highways, besides enabling leasing out of excess network capacity for commercial uses.

With its expansive 1.46 lakh-km of highway network, NHAI’s OFC infrastructure would beat similar networks built by RailTel and Power Grid Corporation of India Ltd (PGCIL) in terms of length and breadth, and help handle the country’s surging data volumes.

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 Rs 35,000 crore.  

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NHAI’s debt servicing cost is estimated to rise to nearly Rs 50,000 crore by FY28.             

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.

The network that NHAI proposes to build will be set up through public-private partnership on Build Operate Transfer (BoT) basis, a senior official said.

The roll-out  of the network will be in phases, so the bids would be invited in packages. For each package a separate concession agreement will be signed with each successful bidder.

The programme will be implemented through National Highways Logistics Management Ltd (NHLML), a subsidiary of NHAI.

Bids from consultants have been invited by NHLML to assist through the entire process of bid and award through providing financial and legal advice, modelling and structuring for implementation of these projects on BOT basis.  The last date of submitting bids by consultants and institutions is December.

Earlier the NHAI had announced development of around 10,000 km of OFC infrastructure across the country. Around 1,367 km on Delhi – Mumbai Expressway and 512 km on Hyderabad – Bangalore Corridor were identified as pilot routes for the Digital Highway development. The stretches of newer highways and expressways have built-in dedicated utility corridors to lay OFCs, which will serve as the backbone for the roll out of the 5G network in the region.

Providing internet connectivity to remote locations across the country, the OFC network will help to expedite the roll out of new age telecom technologies like 5G and 6G. Allotment policy for capacity on OFC network will have to be worked out in consultation with Department of Telecom and Telecom Regulatory Authority of India.