Telecom stock, HFCL secures Rs 2,501-crore advance work order from BSNL, shares rises by 4%
The order was awarded by Bharat Sanchar Nigam Limited (BSNL). The contract will be executed under the design build operate and maintain (DBOM) model, with the construction phase slated for completion in three years.
Telecom stock, HFCL secures Rs 2,501-crore advance work order from BSNL, shares rises by 4%
Prominent telecom equipment maker, HFCL Ltd said it has secured an advance work order (AWO) worth approximately Rs 2,501.30 crore for the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network of BharatNet Phase III in the Punjab telecom circle.
Shares of the telecom sector experienced a notable gain of 5.15% on January 16, 2025. The stock opened with a gap of 2.06%, reaching an intraday high of Rs 102.4, reflecting a 5.4% increase during the trading session.
The order was awarded by Bharat Sanchar Nigam Limited (BSNL). The contract will be executed under the design build operate and maintain (DBOM) model, with the construction phase slated for completion in three years.
The contract I for the design, supply, construction, installation, upgradation, operation, and maintenance of the middle-mile network of BharatNet Phase III in the Punjab Telecom Circle on Design Build Operate and Maintain (DBOM) Model, HFCL said.
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Following that, a 10-year maintenance contract will be in place, with operational expenditure (OPEX) pegged at 5.5% per annum of capex for the first five years and 6.5% per annum for the next five years.
The total consideration includes Rs 1,244.61 crore for capital expenditure (capex), Rs 746.76 crore for the newly constructed network's opex, and Rs 509.94 crore for the opex of the existing network.
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