Bharat Sanchar Nigam Limited (BSNL) has postponed the bid submission deadline for the Rs 65,000 crore BharatNet Phase-III tender for the fifth time. The new deadline for submission is June 28, with bids to be opened on July 1. The tender was initially rolled out in February with an original deadline of April 2. However, the process has slowed due to multiple changes following industry consultations and clarifications issued to stakeholders.
The tender is part of the Rs 1.4-trillion revamped BharatNet project, which involves the design, supply, construction, and installation of optical fiber cables, switches, routers, and other telecom equipment. The goal is to upgrade existing connections in 164,000 gram panchayats and extend connections to around 47,000 additional gram panchayats.
Among several projects for inclusive & affordable connectivity, BharatNet stands out as one of the world's largest rural telecom projects, it connects ~2.5 lakh Gram Panchayats, enabling delivery of services at a click of a button.#ConnectivityForAll@JM_Scindia @PemmasaniOnX pic.twitter.com/OidEpG9gfn
— DoT India (@DoT_India) June 28, 2024
BSNL serves as the single project management agency for the BharatNet program and will receive 1.25% of the basic capital expenditure and operating expenses as management fees. Officials attribute the slow progress to the complexity of the tender. “We have made over 100 changes in the tender conditions, relaxed eligibility requirements for smaller players, and issued clarifications on consortium participation, among other adjustments,” a BSNL official stated.
In response to approximately 4,400 queries from various companies, BSNL has relaxed financial eligibility criteria, reduced penalties, and provided guidelines on trusted source certification and domestic value addition. “We have accommodated industry requests wherever possible and issued multiple clarifications,” the official added, noting that the process is now mostly complete and awaiting bid submissions.
The tender offers a significant revenue opportunity for companies like Nokia, Ericsson, HFCL, STL, TCS, Tejas Networks, and local telecom equipment providers. According to the original timeline, the tendering and award process was to be completed five months after the approval of the BharatNet Phase-III project in August 2023, followed by a master service agreement and the project’s construction within 36 months.
BharatNet Phase-III features a three-tier architecture: internet leased line bandwidth provided by BSNL at 7,269 blocks; middle-mile connectivity from blocks to gram panchayats requiring private operators for a 10-year operation and maintenance period; and last-mile connectivity from villages to households under the Udyami model. BSNL has invited bids from 16 states and UTs, including Madhya Pradesh, Uttar Pradesh, Rajasthan, Puducherry, Bihar, West Bengal, Punjab, Haryana, and Kerala.
The updated tender document has relaxed the financial turnover and net worth requirements for participating companies by up to 33% and 30%, respectively. The government will engage village-level entrepreneurs, or Udyamis, to extend fiber connections to homes on a 50:50 revenue-sharing basis, with Udyamis receiving a one-time financial incentive between Rs 8,900 and Rs 12,900 per fiber-to-home (FTTH) connection.
In August of the previous year, the Union Cabinet approved the third package of Rs 1.39 trillion for BharatNet, bringing the total allocation to over Rs 2 trillion. As of April 1, a total of 211,661 gram panchayats were service-ready, according to government data.
