Shares of HFCL Ltd rallied 5% on Monday, 11 November, after the company announced that its consortium with Aerial Telecom Solutions and Rail Vikas Nigam Ltd (RVNL) has emerged as the lowest bidder (L1) for a BharatNet project by BSNL.

Under the Center’s BharatNet Phase III program, the consortium has submitted bids totalling Rs 6,925 crore to build a middle-mile network in Uttar Pradesh’s east and west.

The company stated that a 10-year O&M order will be given to the consortium partners in due course. After the first network ring is put into service, this will be at an annual rate of 5.5% of capital expenditure for the first five years and 6.5% for the subsequent years, totalling Rs 4,155 crore.

According to HFCL, it also won the BharatNet Phase III bids for Punjab Circle, with a bid value of Rs 1,244 crore. After the first network ring is put into service, the business plans to acquire a 10-year O&M order for around Rs 746 crore at an annual rate of 5.5% for the first five years and 6.5% for the remaining five, according to the company.

Mahendra Nahata, the managing director of HFCL, said, “HFCL is well placed with a diverse product line that includes routers, optical fibre cables, fibre connectivity solutions, transport solutions, power management solutions, etc, to address the need of the BharatNet Phase III programme.”

At 3:10 pm, the shares of HFCL were up 1.75% at Rs 129.01.

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