Rail Vikas Nigam Limited (RVNL) has received a significant order worth ₹9,613 crore from Bharat Sanchar Nigam Limited (BSNL) for the development of the middle-mile network of BharatNet.
1 RVNL will design, build, operate, and maintain the network for ten years. 1 This project is part of the government’s initiative to provide broadband connectivity to rural areas across India. 2 The contract involves the creation, upgradation, and maintenance of the network infrastructure. 1 This win is a major boost for RVNL and reinforces its position as a key player in the development of India’s digital infrastructure.
2. BharatNet, one of the biggest rural telecom projects in the world, implemented in a phased manner to all Gram Panchayats (approximately 2.5 lakh) in the country for providing non-discriminatory access to broadband connectivity to all the telecom service providers. Objective is to enable access providers like mobile operators, Internet Service Providers (ISPs), Cable TV operators, content providers to launch various services such as applications like e-health, e-education and e-governance in rural and remote India. The project has been approved by Union Cabinet on 25.10.2011. The project is being executed by a Special Purpose Vehicle (SPV) namely Bharat Broadband Network Limited (BBNL), which has been incorporated on 25.02.2012 under Indian Companies Act 1956. On 30.04.2016, the Telecom Commission approved to implement the project in three
Key Insights:
- Focus: The news highlights RVNL’s expansion into the telecom infrastructure sector and its role in the government’s BharatNet project.
- Key Event: RVNL securing a multi-year contract worth ₹9,613 crore from BSNL.
- Potential Impact:
- Positive impact on RVNL’s revenue and profitability over the next decade.
- Increased investor confidence in RVNL’s growth prospects.
- Potential for further orders in the telecom infrastructure space.
- Contribution to the government’s Digital India initiative.
Investment Implications:
- This news is likely to have a positive impact on RVNL’s stock price in the short to medium term.
- Investors interested in infrastructure and telecom sectors should consider RVNL as a potential investment opportunity.
- It is important to monitor RVNL’s execution of this project and its ability to secure further orders in this space.
- The success of the BharatNet project could have broader implications for the telecom sector and the overall economy.
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