Rail Vikas Nigam-led consortium inks pact with BSNL

21 Feb 2025 , 10:50 AM

Rail Vikas Nigam Limited announced that in partnership with HFCL Limited and Aerial Telecom Solutions Pvt. Ltd. has entered into a Project Implementation Agency (PIA) agreement with Bharat Sanchar Nigam Limited (BSNL). The partnership is directed towards developing, upgrading, operating, and maintaining the middle-mile network of BharatNet, a government initiative to enhance broadband connectivity across India.

The consortium has been announced as the lowest bidder for the above stated project. The value of the project is approximately ₹13,253 Crore. 

The contract is to be completed within a period of three-year, with a ten-year maintenance phase. As per the company, the maintenance fee is fixed at 5.5% of the annual capital expenditure for the first five years and 6.5% for subsequent five years.

The company stated that the initiative falls under the current expansion of BharatNet, which aims to provide high-speed internet to rural and other remote regions, hence backing the Digital India mission. The successful completion of this project will significantly enhance broadband access, allowing economic development and digital inclusion in underserved regions.

In Q3, the company announced a 13.10% year-on-year decline in net profit at ₹311.60 Crore, despite a stable EBITDA margin reported by the company. The revenue from operations fell 2.6% on a year-on-year basis to ₹4,567.40 Crore. Company’s operating EBITDA was reported at ₹239.40 Crore in the quarter under review, down by 3.90%.

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