New Delhi: NTPC would complete the commercial operation of 1,500 MW Indira Gandhi Super Thermal Power Project at Jharli in Haryana after commissioning the third 500 MW unit on Friday.
With this, all the three units in the first stage shall be commissioned and commercial operation started. There is a future provision for further expansion of 2 x 660MW under the second stage, said a senior NTPC official.
The project Aravali Power Company Pvt Ltd is jointly held by NTPC with 50 per cent share and the remaining equally shared between Haryana Power Generation Corporation Ltd and Indraprastha Power Generation Company Ltd.
The electricity from the unit is supplied to Haryana, Delhi and other northern States. The coal-fired stations received fuel from Mahanadi Coalfields in Odisha. Power evacuation from the project takes place through two associated 400 KV double circuit transmission system to Daultabad in Haryana and Mundka in Delhi.
The first unit was commissioned on October 31, 2010, after 39 months from the date of investment approval. The second unit was commissioned on November 5, 2011.
Success in my Habit
Saturday, April 27, 2013
NIIT Tech bags Rs 344-cr AAI deal
New Delhi: NIIT Technologies has bagged a multi-year contract from the Airports Authority of India worth Rs 344 crore for the implementation of Airport Operations Control Centres. This will be in partnership with SITA, a provider of global information and telecommunication solutions for the air transport industry, to streamline operations at the customer touch points. For example, instead of getting boarding gate number and luggage belt number, a customer can get such information through SMS on real time basis. The project is an initiative undertaken by Civil Aviation Ministry towards modernisation of Indian airports to improve capacity utilisation, passenger throughput enhancement, stakeholder management and process standardisation, NIIT Technologies said. The project will be executed within the next 15 months at the airports in Chennai, Kolkata, Ahmedabad, Pune, Tiruchi, Thiruvananthapuram, Kozhikode, Mangalore, Guwahati and Jaipur. The project has a provision for extending the solution to additional 25 airports in India, it said. NIIT Technologies has also provided similar solutions at 12 airports globally, including Hong Kong, Singapore and Abu Dhabi.
Bosch Rexroth starts production at its new plant in Sanand
Ahmedabad: Bosch Rexroth has started operation at its new plant in Sanand with an investment of Rs 280 crore. The company wants to address the specific regional product and system requirements from its facility and it is not only expanding production but also stepping up sales and development.
The company also plans to set up an additional project at its old site in Vatva in Ahmedabad and the parent company will take a decision about the product category.
""Going beyond production, we have developed the Sanand plant more and more into a technology center,"" said Johannes T. Grobe, MD of Bosch Rexroth in India. Based on the product platforms, engineers develop regional product variations at the plant which meet the specific requirements of the local customers.
Bosch Rexroth manufactures hydraulics components and systems at the site, which are used in machinery applications and engineering, factory automation and mobile applications. The new plant has a total area of around 37,000 square meters.
The company employs around 880 associates in India and 550 of them are working in Ahmedabad. The company registered a turnover of Rs 600 crore in 2012. Bosch Rexroth has been present in India for over 35 years and since 2007, the company has almost doubled its transaction volume. ""With our strategy ""local for local"", we are opening up additional market segments that we would not be able to reach from Germany. In the long run, this also ensures higher capacity utilization in Germany,"" said Wolfgang Horn, senior vice president technical of the Industrial Applications business unit at Bosch Rexroth AG.
In March 2013, the company expanded its presence in Fountain Inn in the US and doubled its production capacity there. In 2012, Bosch Rexroth put into operation new production facilities and offices as well as an R&D center in Wujin, China.
The company also plans to set up an additional project at its old site in Vatva in Ahmedabad and the parent company will take a decision about the product category.
""Going beyond production, we have developed the Sanand plant more and more into a technology center,"" said Johannes T. Grobe, MD of Bosch Rexroth in India. Based on the product platforms, engineers develop regional product variations at the plant which meet the specific requirements of the local customers.
Bosch Rexroth manufactures hydraulics components and systems at the site, which are used in machinery applications and engineering, factory automation and mobile applications. The new plant has a total area of around 37,000 square meters.
The company employs around 880 associates in India and 550 of them are working in Ahmedabad. The company registered a turnover of Rs 600 crore in 2012. Bosch Rexroth has been present in India for over 35 years and since 2007, the company has almost doubled its transaction volume. ""With our strategy ""local for local"", we are opening up additional market segments that we would not be able to reach from Germany. In the long run, this also ensures higher capacity utilization in Germany,"" said Wolfgang Horn, senior vice president technical of the Industrial Applications business unit at Bosch Rexroth AG.
In March 2013, the company expanded its presence in Fountain Inn in the US and doubled its production capacity there. In 2012, Bosch Rexroth put into operation new production facilities and offices as well as an R&D center in Wujin, China.
TN to strengthen power infrastructure with Japanese aid
Chennai: Electricity transmission and distribution infrastructure in Tamil Nadu will be strengthened at a cost of Rs 8,000 crore with 56 more sub-stations being set up this year, Chief Minister J. Jayalalithaa announced in the Assembly today.
The sub-stations will improve the quality of power in Chennai, industrial hubs in the State and south Tamil Nadu. Wind power evacuation capacity will also be increased.
She also said the State will enter into long-term, 15-year power purchase agreements through the Case-1 bidding route to bridge electricity shortfall.
Stored hydel power
A 2,000 MW pumped storage hydro power project will be established at a cost of Rs 7,000 crore in the Nilgiris, she said. The Sillahalla hydroelectric project will be established in stages over the next 8-10 years.
In the first stage, a 91-metre high reservoir will be created across the Sillahalla, a tributary of Kundah, and linked to the Avalanche-Emerald reservoirs. In the next stage a 2,000-MW underground power station will be set up between the proposed Sillahalla reservoir and Pillur reservoir 1,500 metres below. The power will be generated when the water flows through an underground tailrace tunnel.
Surplus power during off peak hours will be used from various sources to lift the water again to the upper reservoir to generate power during the peak demand period.
The State Government has formulated an Rs 5,000-crore plan to strengthen the transmission and distribution infrastructure with Rs 3,572 crore special funding from Japan. The loan will carry 0.55 per cent interest and can be repaid over 20 years with repayment starting after 10 years.
Global funding
The sub-stations planned with the international funding include five 400 kV sub-stations and related distribution lines with Rs 2,750-crore assistance from the Japan International Cooperation Agency. These are to come up in Chennai and Coimbatore.
Work on setting up 14, 230 kV sub-stations will be started to support power supply in Chennai, Tiruppur, Madurai, Thanjavur, Ariyalur, Virudhunagar, Erode and Kanchipuram districts.
A 400 kV sub-station will come up in Thiruvallam, Vellore district, at a cost of Rs 1,000 crore. This will help Tamil Nadu share power with other Southern States with the Power Grid Corporation setting up a 765 kV in Thiruvallam.
Tamil Nadu has over 7,140 MW of wind power generation capacity. To address the evacuation capacity shortage from wind generation in South Tamil Nadu, Rs 1,230-crore 400 kV sub-stations with 788 km length of transmission lines will be set to evacuate wind power from Coimbatore, Udumalpet, and Theni region. A similar project is on to evacuate power from Kayathar, Tirunelveli district, with a 400 kV sub-station and transmission lines at a cost of Rs 2,300 crore to bring the power to Chennai.
The State Government has a target of setting up 3,000 MW of solar power capacity over the next three years.
The Government hopes to make solar power generation a people’s movement. It had announced an incentive of Rs 2 a unit in the initial two years, Re 1 in the next two years and Rs 0.50 for two more years for those setting up rooftop solar power generation facilities. Following demand for more incentives, the Chief Minister said buyers can now avail themselves of an alternative option to get an incentive of Rs 20,000 a kw.
The sub-stations will improve the quality of power in Chennai, industrial hubs in the State and south Tamil Nadu. Wind power evacuation capacity will also be increased.
She also said the State will enter into long-term, 15-year power purchase agreements through the Case-1 bidding route to bridge electricity shortfall.
Stored hydel power
A 2,000 MW pumped storage hydro power project will be established at a cost of Rs 7,000 crore in the Nilgiris, she said. The Sillahalla hydroelectric project will be established in stages over the next 8-10 years.
In the first stage, a 91-metre high reservoir will be created across the Sillahalla, a tributary of Kundah, and linked to the Avalanche-Emerald reservoirs. In the next stage a 2,000-MW underground power station will be set up between the proposed Sillahalla reservoir and Pillur reservoir 1,500 metres below. The power will be generated when the water flows through an underground tailrace tunnel.
Surplus power during off peak hours will be used from various sources to lift the water again to the upper reservoir to generate power during the peak demand period.
The State Government has formulated an Rs 5,000-crore plan to strengthen the transmission and distribution infrastructure with Rs 3,572 crore special funding from Japan. The loan will carry 0.55 per cent interest and can be repaid over 20 years with repayment starting after 10 years.
Global funding
The sub-stations planned with the international funding include five 400 kV sub-stations and related distribution lines with Rs 2,750-crore assistance from the Japan International Cooperation Agency. These are to come up in Chennai and Coimbatore.
Work on setting up 14, 230 kV sub-stations will be started to support power supply in Chennai, Tiruppur, Madurai, Thanjavur, Ariyalur, Virudhunagar, Erode and Kanchipuram districts.
A 400 kV sub-station will come up in Thiruvallam, Vellore district, at a cost of Rs 1,000 crore. This will help Tamil Nadu share power with other Southern States with the Power Grid Corporation setting up a 765 kV in Thiruvallam.
Tamil Nadu has over 7,140 MW of wind power generation capacity. To address the evacuation capacity shortage from wind generation in South Tamil Nadu, Rs 1,230-crore 400 kV sub-stations with 788 km length of transmission lines will be set to evacuate wind power from Coimbatore, Udumalpet, and Theni region. A similar project is on to evacuate power from Kayathar, Tirunelveli district, with a 400 kV sub-station and transmission lines at a cost of Rs 2,300 crore to bring the power to Chennai.
The State Government has a target of setting up 3,000 MW of solar power capacity over the next three years.
The Government hopes to make solar power generation a people’s movement. It had announced an incentive of Rs 2 a unit in the initial two years, Re 1 in the next two years and Rs 0.50 for two more years for those setting up rooftop solar power generation facilities. Following demand for more incentives, the Chief Minister said buyers can now avail themselves of an alternative option to get an incentive of Rs 20,000 a kw.
DC Design to manufacture luxury cars in Gujarat
Ahmedabad: Automobile designer Dilip Chhabria's DC Design would set up a manufacturing facility in Gujarat by 2014. The new facility with a capacity to produce 3,500 units of DC's supercars would come up at Sanand, the designer indicated on Wednesday. The new facility that would entail investment of Rs 60 crore would be developed in a year's time and would manufacture super car DC Avanti and eventually the super SUV, Chhabria said.
"I want DC Design to manufacture limited edition cars. Once we are done with 4000 units of one variant, we would phase that out and introduce a new model in the market. With aspirational young executives getting on board to own their sports car and luxury cars, we have decided to operate in the 25-30 lakh segment," he said.
Chhabria said considering he is close to the launch of DC Avanti, a super car, he would soon require a new facility apart from the one in Pune that would manufacture the super car. DC Design customises and manufactures automotives out of its Pune, Mumbai and Gaziabad plants currently. The Ahmedabad facility will be its fourth facility where it would have dedicated capacity to manufacture 1000 units of DC's existing car variants, while additional 2500 would cater to either DC Avanti or the new SUV DC proposes to showcase in Auto Expo 2014.
DC Design has opened its luxury car showroom in Ahmedabad and expects to sell 40 units in the state every month, said Shaunak Shah, director of Abhidev Automotives that has partnered with DC for Gujarat. DC Design has retail outlets across Delhi, Chennai, Hyderabad, Surat, Mumbai, Pune, Kochi, Raipur and Bengaluru.
"I want DC Design to manufacture limited edition cars. Once we are done with 4000 units of one variant, we would phase that out and introduce a new model in the market. With aspirational young executives getting on board to own their sports car and luxury cars, we have decided to operate in the 25-30 lakh segment," he said.
Chhabria said considering he is close to the launch of DC Avanti, a super car, he would soon require a new facility apart from the one in Pune that would manufacture the super car. DC Design customises and manufactures automotives out of its Pune, Mumbai and Gaziabad plants currently. The Ahmedabad facility will be its fourth facility where it would have dedicated capacity to manufacture 1000 units of DC's existing car variants, while additional 2500 would cater to either DC Avanti or the new SUV DC proposes to showcase in Auto Expo 2014.
DC Design has opened its luxury car showroom in Ahmedabad and expects to sell 40 units in the state every month, said Shaunak Shah, director of Abhidev Automotives that has partnered with DC for Gujarat. DC Design has retail outlets across Delhi, Chennai, Hyderabad, Surat, Mumbai, Pune, Kochi, Raipur and Bengaluru.
KSIDC inks pact with Korean firm to produce solar equipment
Thiruvananthapuram: The Kerala State Industrial Development Corporation has signed a memorandum of understanding with Jusung Engineering, a Korean company for setting up a solar cell and module manufacturing facility in the State.
The MoU was signed by KSIDC Managing Director Tom Jose and the company Vice-President Tae Kwang Kang in the presence of Industries Minister P.K. Kunhalikutty here on Wednesday evening.
Location
Kunhalikutty told reporters that it has been proposed to set up the facility at the United Electricals Ltd premises in Kollam.
A pre-feasibility study will be carried out to establish the techno-economic viability of the project. After that the joint venture will prepare a detailed project report.
It will also prepare a marketing plan for the project. KSIDC will assist to tie-up land, power and other infrastructural support.
It has been proposed to manufacture solar cells and modules of 6-inch dimension and 20 per cent efficiency. The annual capacity in the first phase will be about 100 MW.
The cost of the project is estimated at Rs 500 crore. KSIDC has already engaged the Centre for Management Development for conducting the pre-feasibility study. The study will be completed in May.
The MoU was signed by KSIDC Managing Director Tom Jose and the company Vice-President Tae Kwang Kang in the presence of Industries Minister P.K. Kunhalikutty here on Wednesday evening.
Location
Kunhalikutty told reporters that it has been proposed to set up the facility at the United Electricals Ltd premises in Kollam.
A pre-feasibility study will be carried out to establish the techno-economic viability of the project. After that the joint venture will prepare a detailed project report.
It will also prepare a marketing plan for the project. KSIDC will assist to tie-up land, power and other infrastructural support.
It has been proposed to manufacture solar cells and modules of 6-inch dimension and 20 per cent efficiency. The annual capacity in the first phase will be about 100 MW.
The cost of the project is estimated at Rs 500 crore. KSIDC has already engaged the Centre for Management Development for conducting the pre-feasibility study. The study will be completed in May.
DSK Motowheels picks land near Pune for assembly line
Chennai: Super-bike retailer DSK Motowheels is planning a new manufacturing facility near Pune.
The company has identified 100 acres at Shalgaon, 200 km from Pune. Construction of the Rs 300-350-crore project is expected to start in three to four months and the plant will start assembling bikes in 10 months, said Shirish Kulkarni, Managing Director, at the launch of the company’s 25 {+t} {+h} retail showroom in the country.
Pune-based DSK Motowheels, part of the diversified Rs 5,000-crore DSK group, holds the exclusive rights to assemble and distribute the Korean brand of super bikes (Hyosung) in India.
DSK acquired the super-bike business from Garware Motors in June last year. Since then, it has sold 1,200 bikes, clocking Rs 42 crore. DSK also acquired Garware’s assembling facility in Wai near Pune. This facility assembles around 250 bikes a month (10 bikes in a shift).
After the Shalgaon facility begins operations, DSK plans to convert the Wai facility into a warehouse. The new facility is expected to assemble 18 bikes a shift. Exports could be looked into in the future.
At present, most components are imported from South Korea, through S&T Motors, which owns the Hyosung brand. Over a period of time, DSK expects to get into full-fledged manufacturing and sourcing components locally.
Whether the Korean company S&T Motors will look at investing in the Indian venture, Kulkarni said this is unlikely to happen now.
The Hyosung range in India includes sports and cruiser bikes in the 250-700 cc range, priced Rs 2.8 -Rs 5.8 lakh. DSK is looking at introducing commuter bikes in the 125-150 cc range next year or in 2015.
Super-bikes are high-performance motorcycles used for adventure riding, not daily commuting. This segment is growing at 25 per cent year-on-year. The major players are Harley-Davidson, Honda and Yamaha.
The company has identified 100 acres at Shalgaon, 200 km from Pune. Construction of the Rs 300-350-crore project is expected to start in three to four months and the plant will start assembling bikes in 10 months, said Shirish Kulkarni, Managing Director, at the launch of the company’s 25 {+t} {+h} retail showroom in the country.
Pune-based DSK Motowheels, part of the diversified Rs 5,000-crore DSK group, holds the exclusive rights to assemble and distribute the Korean brand of super bikes (Hyosung) in India.
DSK acquired the super-bike business from Garware Motors in June last year. Since then, it has sold 1,200 bikes, clocking Rs 42 crore. DSK also acquired Garware’s assembling facility in Wai near Pune. This facility assembles around 250 bikes a month (10 bikes in a shift).
After the Shalgaon facility begins operations, DSK plans to convert the Wai facility into a warehouse. The new facility is expected to assemble 18 bikes a shift. Exports could be looked into in the future.
At present, most components are imported from South Korea, through S&T Motors, which owns the Hyosung brand. Over a period of time, DSK expects to get into full-fledged manufacturing and sourcing components locally.
Whether the Korean company S&T Motors will look at investing in the Indian venture, Kulkarni said this is unlikely to happen now.
The Hyosung range in India includes sports and cruiser bikes in the 250-700 cc range, priced Rs 2.8 -Rs 5.8 lakh. DSK is looking at introducing commuter bikes in the 125-150 cc range next year or in 2015.
Super-bikes are high-performance motorcycles used for adventure riding, not daily commuting. This segment is growing at 25 per cent year-on-year. The major players are Harley-Davidson, Honda and Yamaha.
Luxembourg tool maker to make Bengal an export hub
Kolkata: Luxembourg-headquartered cutting tool maker CERATIZIT S.A. plans to make its second plant in Bengal an export hub for other Asian markets. It currently has a local arm – CERATIZIT India Pvt Ltd (a 95 per cent subsidiary), which operates its first plant in South Kolkata. The new plant is located at Uluberia, nearly 40 km west of Kolkata and will cost around Rs 100 crore. The company said that the unit would export 40 per cent of its products to China and other Asian countries.
“Once this unit becomes fully operational, we will export to our sister firms in China and other countries such as Indonesia, Singapore and Malaysia. The plants in India and US could be export hubs for some of our products,” Thierry Wolter, Member of the Executive Board of CERATIZIT S.A., told reporters. The company’s products are primarily meant for the automotive, aerospace and transport sectors.
“Once this unit becomes fully operational, we will export to our sister firms in China and other countries such as Indonesia, Singapore and Malaysia. The plants in India and US could be export hubs for some of our products,” Thierry Wolter, Member of the Executive Board of CERATIZIT S.A., told reporters. The company’s products are primarily meant for the automotive, aerospace and transport sectors.
India enhances bilateral traffic rights with Abu Dhabi
New Delhi: Brushing aside opposition from state-owned Air India, other domestic carriers and private airports, India today enhanced traffic rights for Abu Dhabi to 50,000 seats a week, against the current 13,000 seats. The expansion in bilaterals would virtually put Etihad Airways in the same league as Dubai-based Emirates, which is entitled to about 54,000 seats a week.
Today, the Naresh Goyal-promoted Jet Airways sealed a deal with Abu Dhabi-based Etihad Airways. Under the deal, Etihad would acquire a 24 per cent stake in Jet for Rs 2,054 crore ($379 million).
A press release issued by the civil aviation ministry today said, “After present negotiations, both sides have agreed to allocate an additional entitlement of 36,670 seats per week spread over a period of three years — 11,000 seats per week in 2013, 12,800 seats a week up to the winter schedule for 2014 and 12,870 seats a week up to the winter schedule for 2015.”
Opposition to enhanced bilateral traffic rights wasn’t restricted to aviation circles. In a meeting of an inter-ministerial group, the finance ministry had expressed reservations, saying such a move would take away Indian air traffic and harm not just airports, but also airlines, especially Air India. It added the move would also cannibalise the traffic share of Indian airlines by flying passengers to various parts of the world through its hub airport in Abu Dhabi, as was the case with Emirates.
Last week, at a meeting of the parliamentary standing committee on tourism, transport and culture, headed by Sitaram Yechury, Members of Parliament (MPs) from various political parties voiced concern over Abu Dhabi getting increased access to India through its proposed equity participation with Jet Airways. Trinamool Congress MP Dinesh Trivedi wrote a letter to the prime minister, seeking immediate intervention to suspend talks of increasing bilateral flying rights between India and Abu Dhabi.
Today, the Naresh Goyal-promoted Jet Airways sealed a deal with Abu Dhabi-based Etihad Airways. Under the deal, Etihad would acquire a 24 per cent stake in Jet for Rs 2,054 crore ($379 million).
A press release issued by the civil aviation ministry today said, “After present negotiations, both sides have agreed to allocate an additional entitlement of 36,670 seats per week spread over a period of three years — 11,000 seats per week in 2013, 12,800 seats a week up to the winter schedule for 2014 and 12,870 seats a week up to the winter schedule for 2015.”
Opposition to enhanced bilateral traffic rights wasn’t restricted to aviation circles. In a meeting of an inter-ministerial group, the finance ministry had expressed reservations, saying such a move would take away Indian air traffic and harm not just airports, but also airlines, especially Air India. It added the move would also cannibalise the traffic share of Indian airlines by flying passengers to various parts of the world through its hub airport in Abu Dhabi, as was the case with Emirates.
Last week, at a meeting of the parliamentary standing committee on tourism, transport and culture, headed by Sitaram Yechury, Members of Parliament (MPs) from various political parties voiced concern over Abu Dhabi getting increased access to India through its proposed equity participation with Jet Airways. Trinamool Congress MP Dinesh Trivedi wrote a letter to the prime minister, seeking immediate intervention to suspend talks of increasing bilateral flying rights between India and Abu Dhabi.
Thursday, April 25, 2013
Reliance Jio inks pact with Bharti for cable network
New Delhi: Bharti Airtel will share part of its submarine cable network with Reliance Industries' telecom arm, a rare partnership between two firms not known for their camaraderie.
The country's largest telco will provide Reliance Jio Infocomm data capacity on its undersea cable that links India and Singapore, enabling the Mukesh Ambani-owned venture to connect its proposed 4G network to the Asia-Pacific region.
The old rivals also held out the intriguing possibility of greater cooperation in the future. "Bharti and Reliance Jio will continue to build on this strategic framework and consider other mutual areas of cooperation and development to leverage their respective assets towards offering their customers a much richer experience," said a statement issued by both the companies, without specifying what these areas could be.
Two executives aware of the development said Bharti and Reliance were in discussions for an optic fibre-sharing deal that could be similar to the recent agreement between Reliance Jio Infocomm and Anil Ambani's Reliance Communications. Both Bharti and RIL declined comment on this.
Tuesday's pact marks a break in a narrative of rivalry between the two companies dating back to the early 2000s.
Analytsts welcome connectivity agreement
In the early 2000s, Bharti and Reliance Industries fought a lengthy battle over allowing CDMA operators to offer full-fledged mobile services.
This was followed by a period of truce as the ownership of RIL's telecom business was transferred to Anil Ambani as part of the family settlement of 2005.
But RIL's ambitious re-entry into the telecom sector has reignited the old rivalry, with analysts anticipating a dramatic confrontation both within and outside the marketplace between the country's largest private company and the largest telecom company.
The two groups also compete against each other in retail. RIL's retail business crossed the Rs 10,000-crore revenue mark in 2012-13. While Bharti is a much smaller player in this business, the group is expected to grow it aggressively along with partner Walmart, now that the government has allowed foreign investments in the sector.
Analysts were quick to welcome the data connectivity agreement between the two. "Such deals are good from the industry point of view as they result in sharing of infrastructure, which is costly to build. It is a part of industry consolidation and could be a win-win for all, including the ultimate consumer," said Hemant Joshi, partner, Deloitte Haskins & Sells.
Executives close to Bharti said the company had a history of sharing infrastructure with competitors. They point out the company had taken the initiative to merge its towers with those of Vodafone and Idea to form Indus Towers.
The country's largest telco will provide Reliance Jio Infocomm data capacity on its undersea cable that links India and Singapore, enabling the Mukesh Ambani-owned venture to connect its proposed 4G network to the Asia-Pacific region.
The old rivals also held out the intriguing possibility of greater cooperation in the future. "Bharti and Reliance Jio will continue to build on this strategic framework and consider other mutual areas of cooperation and development to leverage their respective assets towards offering their customers a much richer experience," said a statement issued by both the companies, without specifying what these areas could be.
Two executives aware of the development said Bharti and Reliance were in discussions for an optic fibre-sharing deal that could be similar to the recent agreement between Reliance Jio Infocomm and Anil Ambani's Reliance Communications. Both Bharti and RIL declined comment on this.
Tuesday's pact marks a break in a narrative of rivalry between the two companies dating back to the early 2000s.
Analytsts welcome connectivity agreement
In the early 2000s, Bharti and Reliance Industries fought a lengthy battle over allowing CDMA operators to offer full-fledged mobile services.
This was followed by a period of truce as the ownership of RIL's telecom business was transferred to Anil Ambani as part of the family settlement of 2005.
But RIL's ambitious re-entry into the telecom sector has reignited the old rivalry, with analysts anticipating a dramatic confrontation both within and outside the marketplace between the country's largest private company and the largest telecom company.
The two groups also compete against each other in retail. RIL's retail business crossed the Rs 10,000-crore revenue mark in 2012-13. While Bharti is a much smaller player in this business, the group is expected to grow it aggressively along with partner Walmart, now that the government has allowed foreign investments in the sector.
Analysts were quick to welcome the data connectivity agreement between the two. "Such deals are good from the industry point of view as they result in sharing of infrastructure, which is costly to build. It is a part of industry consolidation and could be a win-win for all, including the ultimate consumer," said Hemant Joshi, partner, Deloitte Haskins & Sells.
Executives close to Bharti said the company had a history of sharing infrastructure with competitors. They point out the company had taken the initiative to merge its towers with those of Vodafone and Idea to form Indus Towers.
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