KPTCL to lease surplus dark fibre, expects ₹130 crore revenue over 15 years

The Karnataka Power Transmission Corporation Limited (KPTCL) is set to commercialise the surplus dark fibre capacity on its extensive optical ground wire (OPGW) network. The move is expected to generate significant long-term revenue for the state-owned utility while strengthening Karnataka's digital connectivity infrastructure.

KPTCL operates a 6,119-kilometre OPGW network, which currently serves its internal grid communication needs. Under the new initiative, the corporation will retain 12 of its 24 optical fibre pairs for its own captive requirements and lease the remaining 12 pairs to licensed telecom service providers, data network companies, and other authorised entities.

Following a competitive bidding process, the project is anticipated to yield approximately ₹130 crore in fixed revenue for KPTCL over the 15-year contract period. In addition to this fixed income, KPTCL will receive 40% of the revenue generated from leasing the dark fibre. The corporation will also earn co-location charges wherever its substation infrastructure is used for housing telecom equipment.

The selected agency will be responsible for marketing and leasing the dark fibre, onboarding customers, operating and maintaining the entire OPGW network, billing, revenue collection, and ensuring service quality throughout the contract duration. The agreement is proposed for 15 years, structured as 10 years with an extendable period of five years, providing KPTCL with a fixed annual fee in addition to revenue-sharing benefits.

This initiative exemplifies the optimal utilisation of public infrastructure, creating a sustainable revenue model for KPTCL while potentially accelerating the rollout of high-speed digital services across Karnataka. Dark fibre refers to unused optical fibre that can be leased to telecom operators, who then light it with their own electronics to deliver internet and data services.

Energy and Tourism Minister K.J. George highlighted the dual benefits of the project. "Commercialising the surplus dark fibre is an excellent example of optimising public assets. Besides creating a sustainable long-term revenue stream for KPTCL, this initiative will accelerate the growth of high-speed digital connectivity and the digital economy across Karnataka," he said.

KPTCL, the state's principal transmission utility, has long been responsible for ensuring reliable power transmission across Karnataka. With the growing demand for high-bandwidth internet, particularly in rural and semi-urban areas, the monetisation of its existing OPGW network provides an opportunity to leverage public investment in electricity infrastructure for broader socio-economic development.

By leasing out the surplus fibre pairs to licensed operators, KPTCL avoids the need for significant upfront capital expenditure while ensuring its own communication network remains unaffected. The revenue-sharing model also ensures that the corporation benefits directly from the commercial success of the leased fibre, aligning its interests with those of the selected agency.

The move comes at a time when several state utilities across India are exploring ways to monetise their fibre assets, given the rapid expansion of digital infrastructure and the BharatNet initiative. KPTCL's approach could serve as a model for other power transmission companies seeking to generate non-tariff revenue.

With a clear regulatory framework and a transparent bidding process, the project is expected to attract interest from major telecom and data infrastructure firms. The successful implementation of this plan could significantly boost KPTCL's finances, enabling further investments in the modernisation of Karnataka's power grid.