What is BharatNet Project? Which stocks will benefit?

BharatNet is the world’s largest rural broadband initiative undertaken by the Indian government. Established in 2017, the project includes provision for on-demand affordable broadband connectivity of 2 Mbps to 20 Mbps for all households and on-demand capacity to all institutions. It is a part of the Digital India vision implemented through a partnership with states and the private sector.

The implementation of this project is taking place under three phases :-

Phase I: This phase included connecting over 1 lakh gram panchayats across India through BSNL, RAILTEL and PGCIL. Around 32,000 km of Optical Fibre (OF) cable of BSNL is being replaced by new OF cable. High-speed broadband service is provided to 2.5 lakh villages benefitting 20 crore rural Indians. This phase was successfully completed by December 31, 2017.

Phase II: Under this phase, additional 1.5 lakh gram panchayats would be connected. The target date fixed for completion of this phase is March 31, 2019. Till March 17, 2019, 125,196 gram panchayats were laid with OF cables and 117,552 gram panchayats were laid with OFC with the installation of equipment. Also, 564 gram panchayats were commissioned on satellite.

Phase III: This phase will begin in 2019 and is expected to get completed by 2023. It will include setting up fibre networks between districts and blocks.

Bharat Broadband Network Limited (BBNL) has placed several orders to listed companies for the implementation of this project which includes Himachal Futuristic Communications, Sterlite Technologies, Vindhya Telelinks, Finolex Cables and Aksh Optifibre, in FY19.