BSNL GSM contract: HC extends stay

The Delhi high court restrained Bharat Sanchar Nigam Limited on Thursday from awarding contracts for its Rs 20,000 crore (Rs 200 billion) GSM network expansion project till November 30 after the telecom PSU sought time to respond to Motorola's affidavit on the bidding process.

A bench comprising acting Chief Justice Vijender Jain and Justice Kailash Gambhir gave BSNL a week's time to file an additional affidavit in the case initiated by US telecom equipment major Motorola after it was disqualified from the race for the 45.5-million line GSM network expansion project.

BSNL's counsel submitted the affidavit filed by Motorola, which was disqualified on technical parameters, has some new facts and that they want more time to respond.

The court, which first heard the petition on November 2, adjourned hearing till November 30.

Last month, BSNL, had opened the financial bids for the GSM network project that seeks to add over 45 million lines over a period of three years at an estimated cost of about Rs 20,000 crore.

Swedish company Ericsson had emerged the lowest bidder followed by Finland's Nokia. While barring the US company from the tender process, BSNL had said that Motorola does not fulfil the necessary techno-commercial standards prescribed by the tender document.

The telecom PSU is currently in the process of evaluating the financial bids of both the players and if selected, Ericsson would be awarded 60 per cent of the contract, while Nokia the remaining 40 per cent of the 45.5 million lines.

According to sources, Ericsson had quoted a price of about $107 per line, while Nokia had asked for $177, but officials of both companies declined to comment.

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