Rail Vikas Nigam Limited, a leading infrastructure development company, has been awarded a ₹3,622 crore project by BSNL under the BharatNet initiative. The project focuses on Middle Mile Network development, aiming to strengthen India’s digital infrastructure. This significant contract highlights RVNL’s expertise in executing large-scale network projects.
Bharat Sanchar Nigam Limited (BSNL) has awarded a contract for the development, upgradation, and operation & maintenance of the middle mile network under the BharatNet project. The contract is based on the Design, Build, Operate, and Maintain (DBOM) model. It is a domestic entity award, with BSNL being the awarding authority.
The contract spans a construction period of 3years, with a subsequent maintenance period of 10 years. During the maintenance phase, the contract stipulates an annual fee of 5.5% of the capital expenditure (capex) for the first five years and 6.5% for the next 5years. The total consideration for the order amounts to ₹36,22,14,47,414.08 (approximately ₹3,622 crore), which includes both operational and maintenance costs over the 10-year period.
The contract has been awarded to a consortium consisting of RVNL (Lead Member), HFCL and ATS (Consortium Members). There is no interest from the promoter or promoter group in the entity that awarded the contract. Additionally, the order does not fall under related party transactions and is conducted at arm’s length.
Rail Vikas Nigam Limited (RVNL), a Navratna CPSE under the Ministry of Railways, was established in 2003 to develop and implement rail infrastructure projects, including new lines, electrification, and bridges. It operates on a turnkey basis, mobilises extra-budgetary resources through equity and debt, and collaborates with central and state governments to fast-track projects and enhance rail infrastructure capacity.
As of January 16, 2025, 10:55 AM, the shares of RVNL are trading at ₹402.40 per share with a surge of 8.20% from its previous day’s closing price. Over the last month, the stock has seen a decline of 14.36% and over the last year it has declined by 6.10%. The stock has a 52-week high and 52-week low of ₹647 per share and ₹213 per share respectively.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jan 16, 2025, 2:00 PM IST
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