Polycab Shares Trade Higher After Signing BSNL Deal Worth over ₹3,000 Crore BharatNet Project

Polycab India Limited has entered into a significant agreement with Bharat Sanchar Nigam Limited (BSNL) as a Project Implementation Agency (PIA) under the Amended BharatNet Programme. The contract, valued at ₹3,002.99 crore, involves the design, supply, construction, upgradation, operation, and maintenance of BharatNet’s middle-mile network in Bihar Telecom Circle.

Breakdown of the Contract Value

The total project cost includes:

• Capital Expenditure (Capex): ₹1,549.66 crore
• Operational Expenditure (Opex) for New Network: ₹929.79 crore
• Opex for Existing Network: ₹523.53 crore

With this deal, Polycab is set to play a pivotal role in enhancing BharatNet’s infrastructure, aimed at strengthening rural broadband connectivity across Bihar.

Understanding BharatNet and Its Importance

The BharatNet initiative is the Indian government’s ambitious plan to improve digital connectivity in rural areas. The project seeks to expand broadband infrastructure, ensuring seamless internet access for villages across India.

By partnering with BSNL for this initiative, Polycab strengthens its presence in India’s digital infrastructure sector, leveraging its expertise in networking and telecommunications.

Project Timeline and Execution Plan

The agreement outlines:

• 3-year construction period
• 10-year maintenance contract (with Opex at 5.5% per annum for the first five years and 6.5% per annum for the next 5 years)

This long-term project highlights Polycab’s continued engagement in large-scale infrastructure development.

Investor Sentiment and Market Reaction

Following the announcement, Polycab’s share price witnessed positive movement.. Shares opened at a level of ₹5,100 and made an intraday high of ₹5,114 on NSE. Large infrastructure contracts like this often bolster revenue visibility and strengthen long-term business fundamentals.

However, it is important to note that while this contract enhances Polycab’s project portfolio, the company’s future stock performance will depend on execution efficiency and market conditions.

Conclusion

Polycab’s ₹3,002.99 crore BharatNet project in Bihar with BSNL marks a significant milestone in India’s digital infrastructure expansion. The deal underscores Polycab’s expertise in telecom networking and its growing presence in large-scale government projects. While investor interest has increased, market participants will closely monitor execution progress and financial impact over the coming years.

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