Rail Vikas Nigam-led consortium signs PIA agreement with BSNL
The contract includes a ten-year maintenance phase after a three-year building phase. For the first five years, the maintenance cost is fixed at 5.5% of the capital expenditure per year; for the next five years, it is set at 6.5%.
Rail Vikas Nigam-led consortium signs PIA agreement with BSNL
State-run Rail Vikas Nigam Ltd (RVNL), in collaboration with HFCL Ltd and Aerial Telecom Solutions Pvt. Ltd has signed a Project Implementation Agency (PIA) agreement with Bharat Sanchar Nigam Ltd (BSNL).
The collaboration intends to build, modernize, run, and maintain BharatNet's middle-mile network, a government project to improve broadband access throughout India. The partnership had emerged as the lowest bidder for this project, valued at around Rs 13,253 crore.
The contract includes a ten-year maintenance phase after a three-year building phase. For the first five years, the maintenance cost is fixed at 5.5% of the capital expenditure per year; for the next five years, it is set at 6.5%.
The program is a component of BharatNet's continuous expansion, which supports the goal of Digital India by bringing high-speed internet to rural and isolated areas. It is anticipated that this project's successful completion will greatly improve internet connectivity, promoting digital inclusion and economic growth in underserved areas.
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RVNL shares are trading lower by 1.74% at Rs 374.80. So far this year, the state-owned rail stock has corrected more than 11%, but the one-year return on Rail Vikas scrip is over 42%.
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