Rail Vikas Nigam Limited (RVNL) has recently informed exchanges that the company received a Letter of Acceptance (LoA) from Bharat Sanchar Nigam Limited (BSNL) for the “Development (Creation, Upgradation, and Operation & Maintenance) of the Middle Mile Network of Bharat Net on a Design Build Operate and Maintain (DBOM) Model” worth Rs 3,622.14 crore. This development aligns with RVNL’s routine business operations and further strengthens its portfolio in delivering large-scale infrastructure projects.
Key Details of the Project
- Entity Awarding the Contract
Bharat Sanchar Nigam Limited (BSNL), a government-owned telecommunications service provider. - Significant Terms and Conditions
The project will adhere to General Contract Conditions, encompassing both construction and operation/maintenance phases. - Nature and Scope of Work
The project involves the development, upgradation, and maintenance of the Middle Mile Network for Bharat Net. It will be executed under the DBOM model. - Execution Timeline
- Construction: 3 years
- Maintenance: 10 years, comprising two phases:
- First 5 years: Maintenance cost at 5.5% per annum of capital expenditure (CAPEX).
- Next 5 years: Maintenance cost at 6.5% per annum of CAPEX.
- Project Value
The project is valued at an impressive ₹36,22,14,47,414.08 (₹3,622.14 crore approximately), which includes both capital expenditure and operational expenditure for maintenance over 10 years. - Consortium Details
RVNL leads the consortium, with HFCL and ATS as consortium members. - Domestic Focus
This project is entirely domestic, furthering India’s infrastructure goals.
