BSNL Awards Rs 1,901 Crore BharatNet Contract to ITI Ltd for Northeast Expansion

ITI
Image Courtesy: ITI

Bharat Sanchar Nigam Ltd (BSNL), the state-run telecom operator, has granted a Rs 1,901.1 crore contract to ITI Ltd, another public sector company, to implement works under the Amended BharatNet program in the northeastern states of Arunachal Pradesh, Nagaland, and Manipur. This contract will involve the development, upgrade, operation, and maintenance of BharatNet infrastructure over the next 10 years, with ITI Ltd serving as the Project Implementation Agency (PIA).

BSNL issued the tender on February 15, 2024, on behalf of the Universal Service Obligation Fund (USOF), and after evaluating multiple bids, selected ITI Ltd for the job. A source familiar with the matter stated that BSNL, acting on behalf of USOF, has engaged ITI Ltd based on the conditions outlined in the tender process, which included bid negotiations and clarifications.

The USOF, which was recently renamed Digital Bharat Nidhi (DBN) under the Telecommunications Act of 2023, is the government’s flagship program to expand telecom services to rural and remote regions. BharatNet, one of the largest rural broadband initiatives globally, was approved by the Union Cabinet in 2011 to provide universal broadband connectivity at the Gram Panchayat (GP) level, ensuring equal access to telecom service providers.

As of May 26, 2025, the project has connected over 2.14 lakh Gram Panchayats, laid over 6.93 lakh kilometers of optical fiber cable, set up 12.81 million Fibre-To-The-Home (FTTH) connections, and installed more than 1.04 lakh Wi-Fi hotspots to improve last-mile connectivity. With an estimated expenditure of around Rs 42,000 crore so far, this new contract with ITI Ltd marks a significant milestone in narrowing the digital gap in the Northeast.

ITI Ltd (Indian Telephone Industries Ltd) is a public sector enterprise established in 1948 and is one of India’s leading manufacturers of telecommunications equipment and services. It is a pioneer in the telecom industry, offering a wide range of products, including switches, routers, optical fiber cables, and satellite communication systems.

It has a significant role in the government’s mission to enhance digital infrastructure across the country. The company also provides services related to broadband connectivity, smart city solutions, and security systems, contributing to the development of India’s telecom ecosystem. With its state-of-the-art manufacturing plants and strong R&D capabilities, ITI Ltd has consistently been a key player in the modernization of telecom networks, supporting initiatives like BharatNet and Digital India.