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The Union Cabinet today approved the setting up of “C-DoT Alcatel Research Center” in Chennai with an outlay of Rs.212 crores, of which equity will be Rs.106 crores (51% equity from Alcatel, a telecom major and global leader in broadband and wireless technology and 49% equity from C-DoT, a premier telecom R&D institution of Government of India). This Center 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. It will also be of help to business and individual interests in urban areas. The Center will put India in the category of leading nations in the research and manufacturing of next generation wireless technology. The Center will also provide opportunities to more than 300 Indian professionals to take part in advanced global research facilities. The products developed will be marketed world wide.
The Cabinet approval comprises:
(i) Setting up of a Global Broadband Wireless Research Centre-CDOT Alcatel Research Center – a Joint Venture of Alcatel CIT, France and C-DOT to be located at Chennai. The Company will be a Private Limited Company initially with a shareholding of 51% from Alcatel and 49% from C-DOT;
(ii) Providing C-DOT a grant of rupee equivalent of Rs 52 crore to make equity investment in the aforesaid JV Company over a period of 3 years (Rs. 13 crore 2005-06, Rs 26 crore in 2006-07 and Rs 13 crore in 2007-08);
(iii) Providing a loan to C-DOT over 4 years for a maximum amount of Rs 52 crore (Rs 13 crore per annum from 2006-07 to 2009-2010) for giving shareholder loan to JV; and
(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 3 months and an appropriate budget provision will be made for providing funds to C-DOT from the year 2005-06 to 2009-2010. In the current year Rs.13 crore would be provided for the same.
YSR/HS/HK/LV
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