State-run telecom provider Bharat Sanchar Nigam Ltd (BSNL) has awarded a contract worth Rs 1,901.1 crore to fellow public sector undertaking ITI Ltd for executing works under the Amended BharatNet program in the northeastern states of Arunachal Pradesh, Nagaland, and Manipur.
According to sources cited by businessline, the agreement between BSNL and ITI was signed on Thursday.
The contract covers development, upgradation, operation and maintenance of the BharatNet infrastructure over a 10-year period, making ITI the Project Implementation Agency (PIA).
The selection came after BSNL—on behalf of the Universal Service Obligation Fund (USOF)—floated bids on February 15, 2024, and after multiple proposal submissions and evaluations.
Quoting the agreement, a source said, “On the basis of acceptance by PIA, for the tender conditions and rates discovered after tender process, BSNL on behalf of USOF has agreed to engage the PIA for the works as are represented in the terms of the tender enquiry, bid, negotiations and clarifications in relation to the implementation of the scope of work and referred in this agreement.”
The USOF, recently renamed Digital Bharat Nidhi (DBN) under the Telecommunications Act, 2023, is the Central government’s flagship initiative to expand telecom access in rural and remote areas.
The BharatNet project—one of the world’s largest rural telecom initiatives—was approved by the Union Cabinet in 2011 to provide non-discriminatory broadband connectivity to all telecom service providers at the Gram Panchayat (GP) level.
As of May 26, 2025, the government has: Connected 2,14,325 Gram Panchayats; Laid over 6,93,303 km of optical fibre cable (OFC); Commissioned 12,81,564 Fibre-To-The-Home (FTTH) connections; and Installed 1,04,574 Wi-Fi hotspots for last-mile connectivity.
The project has so far incurred an expenditure of approximately Rs 42,000 crore, and the new contract with ITI is seen as a significant push toward bridging the digital divide in the Northeast.
(With inputs from business line)