Bharat Sanchar Nigam Limited (BSNL), a state-run telecom company in India, has awarded a Rs 3,000 crore contract to Polycab Services. This contract is for helping BSNl with the BharatNet project. The BharatNet project is an initiative from the Indian government to expand high-speed broadband connectivity to rural India. As per the agreement, Polycab Services will design, construct, install, upgrade, operate and maintain BharatNet's middle-mile network in Bihar. The construction phase will last three years, while the contract for operation and maintenance is for 10 years.
As laid out in the agreement, during the O&M phase, Polycab will collect 5.5% of capital expenditure (Capex) per annum. In the last five years, the payments will grow to 6.5%. Out of the Rs 3003 crore, the capital expenditure has been identified for Rs 1,549.66 crore, operating expenses at Rs 929.7 crore, and an additional Rs 523.33 crore for the existing network.
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What's Happening with BharatNet Project?
The government has confirmed that over 2,10,552 GPs (Gram Panchayats) have been made service ready till January 15, 2025. The goal of the government is to connect every gram panchayat and bring high speed broadband everywhere in the country. However, that is still a distant goal. With the satellite broadband, the government is likely going to reach more locations faster as the need of OFC (optical fiber cable) for broadband would vanish.
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The work is going on in different phases under BharatNet. BSNL is overlooking the implementation of the project along with BBNL (Bharat Broadband Network Limited). Many major Indian companies such as Polycab Services, HFCL, and more have been awarded projects by BSNL off late to help with the deployment and scaling of BharatNet project. The BharatNet project is funded by the USOF (Universal Service Obligation Fund).
