The estimated cost of Rs 1102.38 crore includes operational expenses for five years. The project, which is likely to be completed by December 2018, will enhance mobile connectivity in Andaman & Nicobar Islands.
The project is to set up a direct communication link through a dedicated submarine Optical Fibre Cable (OFC) between Mainland (Chennai) and Port Blair & five other islands viz. Little Andaman, Car Nicobar, Havelock, Kamorta and Great Nicobar.
The investment in telecom infrastructure project will ensure that Andaman & Nicobar Islands (ANI) will get enough bandwidth and telecom connectivity for implementing e-Governance initiatives and the expansion of enterprises and e-commerce facilities.
Currently, satellite is the medium for providing telecom connectivity between Mainland and Andaman & Nicobar Islands. Business and residences in Andaman & Nicobar Islands cannot rely on the present bandwidth and connectivity since bandwidth available is limited to 1 Gbps, satellite bandwidth is costly and its availability is limited.
India government earlier noted that lack of bandwidth and telecom connectivity is hampering socio-economic development of the islands.