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Enron, Reliance in communications pact

US energy giant Enron Corp on Monday signed a $ 137-million agreement with India's Reliance group for an optical fibre cable project in the southern Indian state of Karnataka.

Enron India and Reliance inked the agreement on the sidelines of a global investment meeting in Bangalore, through which the local government hopes to attract 800 million dollars in foreign capital.

The Rs 6-billion ($ 137 million) pact aims at laying an optical fibre cable link across nine districts of the state covering 1,500 kilometres.

An official statement said the network will be completed by next year and will connect data centres in India's software hub of Bangalore, the capital of Karnataka state, to an international gateway in Bombay to access the European markets for software.

Megabyte Infosys Private Limited, a Reliance group company, also signed a separate agreement with the Karnataka state government to lay a 3,000-kilometre fibre optical network along local roads and highways.

"This will provide connectivity in all districts in a phased manner," the official statement said, adding the project was worth $ 120 million.

Domestic telecommunications company, BPL Broadband Network Private Limited, formalised a $ 92-million agreement with the Karnataka government for a separate optical fibre network.

Another four companies also plan to lay optical fibre networks in the state.

"With total investments of Rs 20 billion ($ 459 million) Karnataka, and in particular Bangalore, will have a robust telecommunication infrastructure with adequate bandwidth to promote e-commerce," the statement said.

Two other agreements, including one to manufacture motorcycles and scooters by Suzuki Motor Corporation's joint venture TVS Suzuki Limited at a cost of $ 91 million, were also signed on the first day of the to-day business meeting.