Shares of leading cables and wires manufacturer Polycab India were trading 2% higher on 13 March after the company announced that it had obtained an order from BSNL for around Rs 3,003 crore.

According to the exchange filing, Polycab India and BSNL have reached an agreement whereby Polycab India will serve as the Project Implementation Agency (PIA) for the BharatNet initiative’s middle-mile network design, supply, construction, installation, upgrade, operation, and maintenance in Bihar Telecom Circle (Package No. 7).

The project has a total value of Rs 3,002.99 crore, including GST, and a capital expenditure of Rs 1,549.66 crore. While Rs 523.53 crore has been set aside for the current network, Rs 929.79 crore has been set aside for the newly constructed network’s operating expenditures (OPEX).

This project will include a three-year construction phase and a ten-year maintenance contract. The annual maintenance cost is fixed at 5.5% of capital expenditures for the first five years and 6.5% for the following five.

Shares of Polycab India and other significant cables and wires (C&W) companies declined after Ultratech said earlier in February that it intended to enter the C&W sector. March saw the reversal of the losses, and the shares of the main players have so far generated somewhat negative returns during the month.

At 11:53 am, the shares of Polycab India were trading 0.35% higher at Rs 5,026.40 on NSE.

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