Sterlite Technologies Limited (STL) has secured an Advance Work Order (AWO) from Bharat Sanchar Nigam Limited (BSNL) for the Design, Supply, Construction, Installation, Upgradation, Operation, and Maintenance of the middle mile network of Bharatnet in the Jammu & Kashmir and Ladakh Telecom Circles. This contract has been awarded to STL’s Global Services Business, in consortium with Dilip Buildcon Limited.

Project Scope and Specifications

The project involves comprehensive network design, supply of equipment, construction, and installation of middle mile infrastructure aimed at enhancing the Bharatnet connectivity in the remote regions of Jammu & Kashmir and Ladakh. Middle mile networks are crucial for extending high-speed internet connectivity from central points to remote locations, ensuring seamless data transmission.

The contract also includes upgrading the existing network infrastructure, ensuring that the technology aligns with the latest standards and future demands. Following the construction phase, operation and maintenance of the network will continue for the next 10 years to ensure optimal performance.

Project Duration and Financial Scope

The project is expected to be executed over a period of three (03) years for the construction phase and an additional ten (10) years for the maintenance phase. The financial scope of the project amounts to INR 2631.14 crores, inclusive of GST. The contract breaks down as follows:

• Capex: INR 1620.50 crores for the newly constructed network.

• Opex: INR 972.30 crores for the maintenance of the newly constructed network.

• Opex for Existing Network: INR 38.33 crores for maintaining existing network infrastructure.

The maintenance contract is structured with payments of 5.5% per annum of capex for the first 5 years and 6.5% per annum of capex for the next 5 years, ensuring that the infrastructure remains updated and operational.

Demerger of STL’s Global Services Business

As part of its ongoing business reorganization strategy, STL’s Global Services Business is expected to be demerged into STL Networks Limited under the Scheme of Arrangement. The scheme has been approved by the Honourable National Company Law Tribunal (NCLT) on February 14, 2025, and is now subject to final implementation.

Compliance with SEBI Regulations

This disclosure has been made under Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Further details have been provided in Annexure A as required under:

• SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024

• SEBI Circular no. SEBI/HO/CFD/CFD-PoD-2/CIR/P/2024/185 dated December 31, 2024

No Related Party Transactions or Promoter Interest

The company has confirmed that this contract does not fall under related party transactions and there is no interest from the promoter group or group companies in the entity that awarded the contract, i.e., BSNL.

Strategic Importance for Sterlite Technologies

This project marks a significant milestone for Sterlite Technologies as it strengthens its position as a leader in providing end-to-end connectivity solutions. Bharatnet is India’s ambitious initiative to connect every village with high-speed broadband, and the success of this project will play a pivotal role in achieving that goal.

By leveraging its technological expertise and operational excellence, STL aims to bridge the digital divide in remote areas and contribute to the government’s vision of a digitally inclusive India. This project will not only enhance the connectivity in J&K and Ladakh but also provide opportunities for local employment and skill development in the region.

Consortium with Dilip Buildcon Limited

Partnering with Dilip Buildcon Limited, a renowned infrastructure development company, will ensure that the project benefits from a combination of telecom expertise from STL and construction excellence from Dilip Buildcon. This strategic partnership is expected to accelerate project execution while maintaining high standards of quality and efficiency.

Future Outlook for Sterlite Technologies

With this significant contract win, Sterlite Technologies is set to strengthen its foothold in the telecom infrastructure segment. The company is also exploring opportunities to expand its service offerings in other geographies and extend its expertise in network design, supply, and maintenance.

The successful execution of this contract will further reinforce STL’s reputation as a trusted partner for large-scale telecom infrastructure projects and create new growth avenues in the digital connectivity space.

Conclusion

Sterlite Technologies’ successful acquisition of the AWO from BSNL for the Bharatnet middle mile network in J&K and Ladakh is a testament to its technical prowess and project execution capabilities. With a financial scope of over INR 2631.14 crores and a well-defined timeline of 13 years, this project will significantly contribute to strengthening digital connectivity in these regions. STL’s commitment to delivering high-quality solutions, combined with its strategic demerger plans, positions the company for sustained growth and leadership in the telecom infrastructure sector.

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