The Supreme Court (SC) of Nepal has revoked the writ petition registered by the United Telecom Limited (UTL), paving the way for the construction of the information highway.
A joint bench comprising Justices Prakash Man Singh Raut and Abdul Aziz Musalman on Tuesday annulled the UTL's writ, citing the claims made in the writ could not be sustained.
The UTL had lodged a writ at the Supreme Court after Nepal Telecommunication Authority refused to renew the contract awarded to UTL for installing the optical fiber following the termination of the project period.
With the latest court order in this connection, the way has opened for NTA to revoke the UTL's license.
The UTL, through Tele Infra Nepal, on May 5, 2019, filed a writ challenging NTA's decision of canceling the contract of the project for laying optical fiber along the Mid-Hill Highway and of revoking the license also in case of failure to pay the dues.
NTA had signed an agreement with UTL on April 27, 2017 for expanding optical fiber in Gandaki and Lumbini provinces with the grant of Rs 2.01 billion of Rural Telecommunications Development Fund.
As per the agreement, UTL was supposed to construct the telecommunications infrastructures along the Mid-Hill Highway from Aarughat of Gorkha to Burtibang of Baglung and in 21 districts of the Gandaki and Lumbini provinces until April 27, 2019. However, UTL could not carry out the required works until the deadline.
The government had, in its budget for the fiscal year 2078-79 BS, stated that the information highway would be developed by laying the optical fiber within two years. A meeting of the Council of Ministers on February 15 2022 decided to cancel the agreement with UTL after no construction works of the project were done within the deadline.
