New Delhi: Rail Vikas Nigam Limited (RVNL) has awarded a ₹2,666.09 crore contract to HFCL Limited for the BharatNet Phase-III project in the Uttar Pradesh (West) Telecom Circle. The order marks another major step in expanding India’s rural broadband infrastructure under the government’s flagship BharatNet initiative.
The development was disclosed by HFCL in a regulatory filing to the BSE and NSE.
Scope of Work Includes OFC Network and Long-Term Maintenance
The contract covers a comprehensive telecom infrastructure rollout, including:
- Supply of telecom equipment and accessories
- Installation and commissioning of the network
- Development of Optical Fiber Cable (OFC) telecom infrastructure
- 10-year operation and maintenance, including a 1-year warranty period
The project is designed to strengthen rural digital connectivity across Uttar Pradesh (West).
Financial Structure of the Project
The total contract value of ₹2,666.09 crore is divided into:
- Capital Expenditure (Capex): ₹1,192.82 crore
- Operational Expenditure (Opex): ₹1,473.27 crore (covering 10-year maintenance)
The project will be executed under a structured long-term delivery model combining infrastructure creation and lifecycle maintenance.
Execution Timeline and Project Duration
According to the contract terms:
- Implementation period: 2 years
- Maintenance period: 10 years (including 1-year warranty)
The contract has been awarded under normal business operations and does not involve any related party transactions, as confirmed by HFCL.
Part of Larger BharatNet Phase-III Expansion
This order comes in addition to a previous ₹2,167.65 crore contract awarded by RVNL to HFCL on January 23, 2025, which covered BharatNet Phase-III projects in both Uttar Pradesh (East) and Uttar Pradesh (West) telecom circles.
With this new order, HFCL continues to strengthen its position as a key implementation partner in India’s rural broadband expansion programme.
Strategic Boost for Digital Connectivity in Rural India
The BharatNet initiative aims to provide high-speed broadband connectivity to rural and remote regions across India. This project is expected to significantly improve digital access, governance services, and connectivity infrastructure in Uttar Pradesh (West).
HFCL has stated that the contract further enhances its execution capabilities in large-scale telecom network deployments.
Company Disclosure and Compliance Details
HFCL confirmed that the contract:
- Was awarded by a domestic entity (RVNL)
- Does not involve any promoter or group company interest
- Is not classified as a related party transaction
The communication was signed by Manoj Baid, President & Company Secretary, HFCL Limited.
About Rail Vikas Nigam Limited (RVNL)
Rail Vikas Nigam Limited (RVNL) is a Government of India enterprise under the Ministry of Railways, responsible for executing railway infrastructure projects, including electrification, track expansion, and telecom-related connectivity works. The company plays a key role in modernizing India’s transport and communication infrastructure through large-scale engineering and development projects.
