HFCL Limited has achieved a significant milestone by securing an Advance Work Order (AWO) worth approximately ₹2,501.30 crores from Bharat Sanchar Nigam Limited (BSNL).
Post the announcement, on January 17, 2025, HFCL share price opened at ₹106.00, up from its previous close of ₹102.34. At 9:44 AM, the share price of HFCL was trading at ₹104.58, up by 2.19% on the NSE.
The order is for the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network for BharatNet Phase III in the Punjab Telecom Circle. This ambitious project aligns with the Government of India’s ‘Digital India’ vision, aimed at bridging the digital divide and ensuring equitable internet access in rural and underserved regions.
The BharatNet Phase III initiative is one of India’s most impactful digital infrastructure projects, seeking to connect over 6,40,000 villages with high-speed internet. The project aims to deliver a minimum of 100 Mbps bandwidth at each gram panchayat (GP), covering over 2,50,000 GPs nationwide. HFCL’s role in this project is crucial, as the company will implement the initiative under the Design Build Operate and Maintain (DBOM) model, showcasing its expertise in large-scale telecom solutions.
The financial structure of the project reflects a well-defined approach. The total project value includes a capital expenditure (Capex) of ₹1,244.61 crores, operational expenditure (Opex) of ₹746.76 crores for the newly constructed network, and Opex of ₹509.94 crores for the existing network.
The project’s construction phase is expected to be completed in three years, followed by a 10-year maintenance period. During the maintenance phase, the contract stipulates an annual Opex of 5.5% of the Capex for the first five years and 6.5% for the subsequent five years.
By bridging the connectivity gap in rural areas, BharatNet Phase III is set to foster socio-economic growth and create a digitally empowered India.
HFCL Ltd (Himachal Futuristic Communications Limited) is a multifaceted telecom infrastructure provider, specialising in telecom infrastructure development, system integration, and the production and supply of advanced telecom equipment, optical fibre, and optic fibre cables (OFC).
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Published on: Jan 17, 2025, 9:51 AM IST
Nikitha Devi
Nikitha is a content creator with 6+ years of experience in the financial domain. Specialising in personal finance, investments, and market insights, Nikitha simplifies complex financial topics, making them accessible to readers.
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