Sterlite shares jump nearly 6% as company bags ₹1,625 crore BSNL contract for Bharat Net project in Jammu & Kashmir

Sterlite Technologies Limited (STL) witnessed a significant surge in its stock price on Thursday after announcing that it has secured a major contract from Bharat Sanchar Nigam Limited (BSNL). As of 9:31 am, Sterlite’s shares were trading 5.63% higher at ₹129.00 on the National Stock Exchange (NSE).

The contract, valued at INR 1,625.36 crore, involves the development, upgradation, and maintenance of a middle-mile network under the Bharat Net project in Jammu & Kashmir. The scope of the project covers both the construction and maintenance phases, highlighting STL’s expanding role in India’s digital infrastructure.

Project Details:

• Development & Maintenance: The contract follows a Design, Build, Operate, and Maintain (DBOM) model, focusing on creating and maintaining the middle-mile network for Bharat Net.
• Duration: STL will handle the construction over a period of three years, followed by a 10-year maintenance period.
• Revenue Model: The maintenance phase includes an annual capex charge, with BSNL committing to 5.5% of the capex per annum for the first five years and 6.5% per annum for the remaining five years.

Strategic Importance:

This contract reinforces Sterlite’s position as a critical player in India’s digital and telecom infrastructure. The Bharat Net project, a central government initiative aimed at improving internet access in rural and remote regions, aligns with Sterlite’s strategic goals of supporting India’s digital transformation.

This development comes as part of STL’s focus on expanding its market presence and driving long-term growth through key public-private partnerships. The boost in share price reflects investor confidence in STL’s capacity to deliver on large-scale projects and contribute to India’s infrastructure goals.