Polycab India bags order worth Rs 3000 crore from BSNL under BharatNet

Polycab India bags order worth Rs 3002 crore from BSNL

Leading cables and wires manufacturer Polycab India has bagged an order worth approximately Rs 3,003 crore from BSNL, the company announced in an exchange filing on March 13.

The stocks are trading modestly higher by over 0.70 percent in early trade.

The exchange filing said Polycab India has signed an agreement with BSNL to serve as the Project Implementation Agency (PIA) for the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network under the BharatNet initiative in Bihar Telecom Circle (Package No. 7).

The total project value stands at Rs 3,002.99 crore (inclusive of GST) and has a capital expenditure of Rs 1,549.66 crore. The operating expenses (opex) stand at Rs 929.79 crore for the newly constructed network and Rs 523.53 crore has been set aside for the existing network.

This project will involve a three-year construction period, followed by a 10-year maintenance contract. The maintenance cost is structured at 5.5 percent per annum of capex for the first five years, and 6.5 percent per annum for the subsequent five years.

Earlier in February, shares of Polycab India along with other leading cables and wires (C&W) players had taken a hit after Ultratech announced plan to foray into the segment. March saw the losses reversed and shares of the leading players have so far given marginally negative returns over a one month period.

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