Polycab India Limited, a leading Indian manufacturer and provider of wires, cables, and other electrical solutions, has emerged as the Lowest Bidder (L1) for Bharat Sanchar Nigam Limited’s (BSNL) Bharat Net project. This prestigious project is part of India’s initiative to enhance digital connectivity in rural and underserved regions and focuses on the middle mile network infrastructure for Karnataka, Goa, and Puducherry. The Bharat Net project is structured as a Design, Build, Operate, and Maintain (DBOM) model.

Key Details of the Project and Agreement with BSNL

As outlined in Annexure A of the official notice, the Bharat Net project comprises several critical aspects:

1. Project Scope: The contract includes the development, upgradation, and operational maintenance of the middle mile network for the states of Karnataka, Goa, and Puducherry.
2. Timeframe:
   • Construction Period: Three years to complete the development of network infrastructure.
   • Maintenance Contract: Ten years of maintenance under specified rates. For the first five years, the maintenance fee is set at 5.5% of the capital expenditure (capex) annually, increasing to 6.5% for the subsequent five years.
3. Project Value: Estimated at INR 4,099.69 crore, this investment reflects BSNL’s commitment to expanding India’s digital reach and Polycab’s capacity to support substantial infrastructure projects.

Polycab’s Strategic Growth and Project Execution

Polycab India’s successful bid aligns with its broader strategic goal to leverage its expertise in electrical and communication infrastructure to contribute to major government-led digital initiatives. With extensive experience in high-value, large-scale projects, Polycab India is well-equipped to manage the construction and long-term maintenance phases of this project. This contract is expected to significantly contribute to Polycab’s revenue and reinforce its standing in the Indian telecom and digital infrastructure sectors.

Regulatory Compliance and Transparency

Polycab India has adhered to SEBI’s Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015 by promptly notifying the exchanges about its L1 status and including details on project specifics, duration, and financial scope. The company confirmed that there is no promoter group interest in BSNL, and the transaction does not fall under related party transactions, thereby emphasizing transparency.

Future Outlook and Benefits of the Bharat Net Project

The Bharat Net project, a key initiative under India’s Digital India program, aims to establish an affordable, high-speed broadband network across the country’s rural landscape. By undertaking the Karnataka, Goa, and Puducherry package, Polycab is positioned to support the digital empowerment of millions of citizens while tapping into the growth of India's digital economy.

This contract is a promising step in Polycab’s diversification into telecom infrastructure and aligns with its long-term objective to provide end-to-end digital and electrical solutions across the nation.

In summary, Polycab India’s contract with BSNL for the Bharat Net project marks a significant achievement in its project portfolio, opening doors for further opportunities within India’s telecom and digital connectivity sectors.

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