HFCL secures ₹2,666 crore BharatNet Phase 3 contract
after close1 source ↓machine-written, see hownot a recommendation
- from Rail Vikas
- ₹2,666.09 crore
- regulatory filing
- 11 Oct 2023
- and operational expenditure
- ₹1,192.82 crore
- over a maintenance
- ₹1,473.27 crore
HFCL has secured a significant contract worth ₹2,666.09 crore from Rail Vikas Nigam Limited (RVNL) for the BharatNet Phase-3 project. This deal, announced in a regulatory filing on 11 Oct 2023, includes a capital expenditure (CapEx) of ₹1,192.82 crore and operational expenditure (OpEx) of ₹1,473.27 crore over a maintenance period of ten years. HFCL will be responsible for supplying telecom equipment, building an optical fibre cable network, and providing installation and commissioning services.
This contract is crucial for HFCL as it reinforces the company's position in the telecom equipment sector, particularly in the expanding BharatNet initiative aimed at enhancing digital connectivity across rural India. The project is expected to contribute positively to HFCL's revenue stream and operational capabilities, aligning with the government's push for improved telecom infrastructure. The execution timeline for this project spans two years, indicating a steady inflow of work and revenue for HFCL during this period.
Looking ahead, investors should monitor HFCL's progress on the BharatNet project, particularly any updates on the execution timeline and the financial performance stemming from this contract. Additionally, the broader implications for the telecom sector in India could be significant, especially as the government continues to invest in digital infrastructure.
Source: ET Telecom, 11 Oct 2023
Not investment advice. For informational purposes only.