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RVNL Secures ₹5,000 Cr BSNL Project as Lowest Bidder

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Synopsis:

RVNL’s consortium emerged as the lowest bidder for BSNL’s ₹5,000 crore Bharat Net project. The contract spans three years for construction and ten years for maintenance.

RVNL news today

Rail Vikas Nigam Ltd (RVNL), in partnership with HFCL Limited and Aerial Telecom Solutions Pvt. Ltd., has won a substantial contract from Bharat Sanchar Nigam Limited (BSNL). The consortium led by RVNL emerged as the lowest bidder (L1) for the “Development (Creation, Upgradation and Operation & Maintenance) of Middle Mile network of Bharat Net on Design Build Operate and Maintain (DBOM) Model.” This project, valued at ₹5,008.20 crore, is a key part of the Bharat Net initiative, aimed at improving India’s digital infrastructure.

RAIL VIKAS NIGAM LIMITED

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Updated - 12 November 2024
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Project details and timeline

The ₹5,000 crore contract awarded to the RVNL-led consortium includes the construction and maintenance of the middle-mile network for Bharat Net. The project will involve the development, upgradation, and long-term maintenance of the network, enhancing connectivity in rural and remote areas across India. The construction phase of the contract is set to span three years, while the maintenance phase will extend over a decade, ensuring sustained support and operation for the network.

RVNL share price impact and market performance

Following the announcement, RVNL’s share price saw a notable uptick, closing 4.1% higher at ₹469.75 on November 6. This increase reflects the market’s positive response to the contract win, which is expected to bolster RVNL’s revenue and enhance its visibility within the telecommunications infrastructure sector. With a market capitalisation of ₹97,847 crore, RVNL’s stock continues to show growth potential as it diversifies its project portfolio beyond rail infrastructure.

Role of RVNL in infrastructure development

Incorporated in 2003 as a Government of India entity, RVNL has primarily focused on developing rail infrastructure, including projects like doubling tracks, gauge conversion, electrification, and construction of new railway lines. This venture into the telecommunications sector with the BSNL project signifies a strategic shift, expanding RVNL’s expertise into digital infrastructure.

Consortium details and scope

The partnership with HFCL Limited and Aerial Telecom Solutions Pvt. Ltd. allows RVNL to leverage combined expertise in telecommunications and network infrastructure. While the specific roles and shares of RVNL, HFCL, and Aerial Telecom in the consortium are yet to be defined, this collaboration strengthens the consortium’s capability to execute large-scale projects like the Bharat Net initiative.

Winning the BSNL Bharat Net project marks a significant milestone for RVNL, furthering its commitment to supporting India’s infrastructure growth across diverse sectors. As the project progresses, RVNL’s successful execution could enhance its industry standing, adding to its portfolio of government-led initiatives and potentially positively influencing the RVNL share price in the long term.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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