BharatNet Phase 3: BSNL partners with HFCL for connectivity project

The BharatNet project, the government's connectivity program, is anticipated to be finished in 2025. Bharat Sanchar Nigam Limited (BSNL) has announced a consortium as the lowest bidder for its phase 3 HFCL-RVNL-Aerial Telecom Solutions Private Limited. The bids for the middle-mile network in Uttar Pradesh (UP) East and West are priced at Rs 6,925 crore. This relates exclusively to BharatNet Phase 3.

Furthermore, a 10-year O&M contract of Rs 4,155 crores would be granted to the consortium at an annual rate of 5.5% of the capital expenditures for the first five years and 6.5% for the next five. After the first network ring is put into service, this will take place.

In addition, after being the lowest bidder for Rs 1,244 crores, HFCL was awarded another order by BSNL for the BharatNet project phase-3 in the Punjab circle. It is also anticipated that HFCL will earn O&M orders of around Rs 746 crore over a ten-year period. For the first five years, the interest rate will be 5.5% annually, and for the next five years, it will be 6.5%.
HFCL's managing director, Mahendra Nahata, stated: "Our track record of successfully completing strategically important projects enhances our reputation as a reliable partner of the Indian government. In order to meet the demands of the BharatNet Phase III initiative, HFCL is well-positioned with a broad range of products, such as routers, optical fibre cables, fibre connectivity solutions, transport solutions, power management solutions, etc. As a reliable BSNL partner, we anticipate working together going forward and making a major contribution to the BharatNet Phase-III program's success."

BharatNet Project 

In August, last year, the government had allocated Rs 1,39,579 crore for the next phase of the Bharat Net, which will improve connectivity throughout the country's outlying regions. By achieving this, over the course of the next two years, Bharat Net would grow from the current 1.94 lakh connected villages to 6.40 lakh villages nationwide.

The Universal Service Obligation Fund (USOF) provides funding for the BharatNet Project. Every rural area in India is designated to receive fiber-based internet service under the scheme. The Bharat Net project is being carried out by a Special Purpose Vehicle (SPV) that was created by the merger of Bharat Sanchar Nigam Limited (BSNL) and Bharat Broadband Network Limited (BBNL).

The Communication Ministry stated that an initial trial operation in four locations led to the decision to pursue the extension project. The initiative was extended to 60,000 villages in eight months, spanning most of the states in the country.

Nearly 1,700 towers were fiberized during the pilot project, and online training is available for fibre installation and maintenance. The government is paying the project's capital costs, and any damage to the optical fibre triggers a robotic alert to the network operation centre. The initiative is expected to generate 2.50 lakh new jobs.