Polycab India on June 17 announced that it has signed an agreement with Bharat Sanchar Nigam Limited (BSNL) for a project worth nearly Rs 6,447.54 crore.
In an exchange filing released in the post market hours of June 17, Polycab India said that the order pertains to the design, supply, construction, installation, upgradation, operation and maintenance of the middle mile network of Bharat Net in Karnataka, Goa and Puducherry Telecom Circle.
The Rs 6,448-crore broad consideration of the project includes capex of Rs 3,742 crore, opex for newly constructed network of Rs 2,245 crore and opex for existing network of Rs 460.5 crore.
The construction works under the contract are scheduled to be completed within three years. The contract also includes maintenance for 10 years at a rate of 5.5 per annum of capex in first five years, and 6.5 percent per annum of capex for next five years.
BSNL said that the project will be funder by DoT and will aim to provide high speed broadband connectivity to all inhabited Gram Panchayats (GPs) and villages. "Major milestone for moving forward to achieve vision of Hon'ble PM to provide broadband in rural areas and to bridge the digital divide," the company said in a post on X.
Earlier in November last year, Polycab had announced that it has emerged as the lowest bidder for the said project. The broad consideration of the contract was then estimated at Rs 4,100 crore.
The exchange filing was released in the post market hours of June 17. Polycab India shares dropped over 1 percent to close at Rs 6,037 apiece. The stock will be kept under active watch tomorrow when market reopens.
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