Sterlite Technologies Limited (STL), through its demerged Global Services Business vertical, has announced the signing of a significant agreement with Bharat Sanchar Nigam Limited (BSNL). The agreement, signed on June 11, 2025, pertains to the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network under the BharatNet initiative for the Jammu & Kashmir and Ladakh telecom circles, under Package 13.
This development follows STL’s earlier disclosure dated March 27, 2025, and is aligned with the Scheme of Arrangement approved by the Hon’ble National Company Law Tribunal, Mumbai, on February 14, 2025. As per the scheme, STL’s Global Services Business has been demerged into STL Networks Limited, effective from the close of business hours on March 31, 2025. Consequently, the agreement will be novated in favor of STL Networks Limited upon completion of the required formalities.
The agreement marks a major step in the government’s push to expand digital infrastructure across India’s underserved regions. The middle-mile network will play a crucial role in connecting Gram Panchayats to the main internet backbone, thereby facilitating last-mile connectivity under the BharatNet initiative.
Valued at ₹2,631.14 crores (inclusive of GST), the agreement includes a capital expenditure of ₹1,620.50 crores. Additionally, it covers operational expenditure for both the newly constructed network, estimated at ₹972.30 crores, and the existing network, valued at ₹38.33 crores. The project duration spans three years for construction, followed by a ten-year maintenance period. The maintenance component will be compensated at 5.5% of the capital expenditure annually for the first five years and 6.5% per annum for the subsequent five years.
The contract has been awarded by BSNL, a domestic public sector undertaking, and outlines general contract conditions. It signifies STL’s continued commitment to building robust digital infrastructure in remote and strategic regions of India.
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