Israeli firm Gilat Satellite Networks Ltd has announced it has signed a multi-million dollar contract with Indian Tobacco Company Ltd to supply VSATs for the company's expanding Internet project, E-Choupal, now reaching over 2 million farmers in six states.

As per the agreement, Gilat will be supplying its Skystar 360E VSATs to the Indian company as it expands its operations to cover 11 more states. The Israeli firm has already supplied over 1,500 VSATs during the past 12 months, primarily for ITC's E-Choupal project.

Part of the implementation of the E-Choupal network is being carried out by Gilat's long-time customer and system integrator, HCL Comnet Ltd.

"The enthusiastic response from farmers has encouraged us to plan for the extension of the E-Choupal initiative to 11 other states across India over the next few years. There are plans to channelise services related to micro-credit, insurance, health and education through the same E-Choupal infrastructure," a company release quoted ITC's international business division CEO Siva Kumar as saying.

Gilat's executive vice president of sales Avihu Bergman said, "India continues to fulfill its promise as one of the world's fastest-growing markets for VSAT technology. With the acceleration in the deployment of E-Choupal sites by ITC, we feel vindicated in our continued commitment to this project and the Indian market."

"The E-Choupal project is a case study for rural farmers from different geographies who can benefit from the pioneering work done by ITC for this project," he said.

"We also find it gratifying to know that our technology is used to bring the power of high-speed Internet access -- as well as interactive data applications -- to rural farmers through out the country. We will be continuing our successful relationship with ITC and HCL Comnet," he said.

Launched in June 2000 by the international business division of ITC, E-Choupal has emerged as the largest initiative among all Internet-based interventions in rural India. ITC won the Seagate Intelligent Enterprise of the Year 2003 Award for the most innovative usage of information technology on the initiative.