Polycab India Limited has entered into a significant agreement with Bharat Sanchar Nigam Limited (BSNL) as a Project Implementation Agency (PIA) for the BharatNet initiative in Bihar. This project, valued at ₹3002.99 crores (inclusive of GST), aims to strengthen digital connectivity in rural and semi-urban regions by developing the middle-mile network infrastructure.

Key Highlights of the Agreement

Project Scope: Polycab will be responsible for designing, supplying, constructing, installing, upgrading, operating, and maintaining the middle-mile network for BharatNet in Bihar under Package No. 7.

Financial Breakdown:

Capex (Capital Expenditure): ₹1549.66 crores

Opex (Operational Expenditure) for the New Network: ₹929.79 crores

Opex for the Existing Network: ₹523.53 crores

Execution Timeline:

Construction Phase: 3 years

Maintenance Period: 10 years (5.5% per annum of Capex for the first 5 years, 6.5% per annum of Capex for the next 5 years)

Nature of Contract: The contract is a domestic agreement under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Promoter Interest: No involvement of the promoter group in awarding this contract.

Impact on Polycab and BharatNet

This strategic partnership enhances Polycab’s position as a key player in India's digital infrastructure growth while supporting the government's vision of rural broadband connectivity under the BharatNet program. The project is expected to improve internet access for millions in Bihar, bridging the digital divide.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Readers are advised to conduct their own research or consult financial experts before making any investment decisions related to Polycab India Limited.