(2 September 2005 11p.m.)

NEW DELHI: The Union Cabinet today approved the setting up of a broadband and wireles technology centre in association with global telecom major Alcatel.

The centre would be called C-DoT Alcatel Research Center and will be based in Chennai.

The total outlay of the project has been pegged at Rs.2,120 million, of which equity will amount to Rs.1,060 million.

Alcatel will hold 51 per cent equity in the venture, while the remaining 49 per cent will be held by C-DoT, a premier telecom R&D institution promoted by the government of India.

This centre will work on broadband wireless solutions initially on WiMAX technology suitable for rural areas, which will help in faster implementation of e-governance, e-education, e-health, e-agriculture and telemedicine initiatives in the rural sector.

The Center, according to the government, will put India in the category of leading nations in the research and manufacturing of next generation wireless technology.

The venture will also provide opportunities to more than 300 Indian professionals to take part in advanced global research facilities. The products developed will be marketed worldwide.

The Cabinet approval comprises the following:

(i) Setting up of a Global Broadband Wireless Research.

(ii) Providing C-DOT a grant of rupee equivalent of Rs 520 million to make equity investment in the aforesaid JV Company over a period of three years (Rs. 130 million 2005-06, Rs 260 million in 2006-07 and Rs 130 million in 2007-08).

(iii) Providing a loan to C-DOT over four years for a maximum amount of Rs 520 million for giving shareholder loan to the JV.

(iv) Approval of the JV agreement as well as Technology Transfer & License Agreement.

A strategic alliance in the form of setting up of Global Research Center would enable India to lead in developing wireless technology. This will result in spread of Worldwide Inter-operability for Microwave Access (WiMAX) Technology in India and other developing countries.

The initial project will encompass the development of Customer Premises Equipment (CPE) compliant to WiMAX Technology and value addition in the infrastructure products being developed by Alcatel.

The Center would be set up within three months and an appropriate budget provision will be made for providing funds to C-DOT from the year 2005-06 to 2009-2010.