Kochi: The slowdown in the information sector and a severe cash crunch have forced Dishnet DSL, BPL and Finolex-Lucent to rethink their investment plans, worth hundreds of crores of rupees, in Keralas fibre-optic (FO) projects.

Dishnet DSL has apprised the state government of its decision to pull out of an ambitious project to lay broadband FO cables in the state. Both BPL and Finolex-Lucent are likely to take a decision on this regard soon, sources said.

The government had given the right of way (RoW) to seven companies for laying broadband FO cables across Kerala. The companies - Reliance Network, Bharti Telecom, Asianet Satellite Communication, Escotel, Dishnet, BPL and Finolex-Lucent - were expected to bring in investments worth Rs 1,500 crore in the next two years through the FO projects.

With one company pulling out and another two having second thoughts on investments, there is a likelihood that the expected realisation for the government from the projects might come down drastically. The three companies were expected to invest over Rs 700 crore through the FO projects.

State IT secretary Aruna Sundararajan admitted that Dishnet DSL has gone back on its investment decision, while BPL and Finolex-Lucent have gone slow on their plans. However, the officials said the shortage of funds arising out of the withdrawal of these companies would be offset by additional investments from Reliance Network and Bharti Telecom in the FO projects.

Also, the government hopes to attract other companies for laying FO cables. The officials said Escotel Communication was given the RoW only recently and other companies may also join in. Industry sources said this may not fructify as telecommunication and IT sectors are facing a global slowdown. Companies may be willing to put in investments in the sector only after a revival is seen in these sectors.

Reliance has already completed 70 per cent of the network, which would be commissioned early next year. Bharti Telecom and Asianet Satellite Communication are also going ahead with their plans and are expected to commission their networks within six months, government officials said.

Reliance Network, which began laying broadband FO cables along the national and state highways, later improved upon their plans and is now laying the network even in the interior parts of the state. In its first stage, Reliance laid cables along Valayar-Parasala and Mannuthy-Palakkad segments.