Bharat Sanchar Nigam Limited (BSNL), India’s state-owned telecom operator, has awarded a ₹3,000 crore contract to Polycab Services to support the BharatNet project. BharatNet is a government initiative aimed at expanding high-speed broadband connectivity to rural areas across India. Under this contract, Polycab Services will be responsible for designing, constructing, installing, upgrading, operating, and maintaining BharatNet’s middle-mile network in Bihar. The project’s construction phase is set to last three years, while the operation and maintenance (O&M) phase will continue for ten years.
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As per the agreement, Polycab will earn 5.5% of the capital expenditure (Capex) annually during the O&M phase. In the last five years of the contract, this payment will increase to 6.5%. The total project cost of ₹3,003 crore is allocated as follows: ₹1,549.66 crore for capital expenditure, ₹929.7 crore for operating expenses, and ₹523.33 crore for maintaining the existing network.
BharatNet Project: Current Status and Future Plans
The Indian government has confirmed that, as of January 15, 2025, over 2,10,552 Gram Panchayats (GPs) have been made service-ready under the BharatNet project. The ultimate goal is to connect every Gram Panchayat and ensure high-speed broadband access across the country. However, achieving this nationwide connectivity remains a work in progress.
Satellite broadband is expected to accelerate the expansion by reducing reliance on Optical Fiber Cable (OFC) infrastructure. The BharatNet project is being implemented in multiple phases, with BSNL overseeing its execution alongside Bharat Broadband Network Limited (BBNL). To support the project’s deployment and scaling, BSNL has recently awarded contracts to several major Indian companies, including Polycab Services and HFCL. The initiative is funded by the Universal Service Obligation Fund (USOF), ensuring financial backing for its continued development.
