Aksh Optifibre wins $33M order for Indian rural broadband project

New Delhi-based Aksh Optifibre Ltd. (BSE: 532351 | NSE: AKSHOPTFBREQ) says it has won the contract to supply fiber-optic cables for Package B of India’s National Optic Fiber Network (NOFN) backbone project.

The NOFN project aims to connect over 250,000 gram panchayats (local government institutions in villages or small towns) across India. The aim is to sow the seeds for an e-revolution in the rural parts of the country by empowering the nation to provide better e-governance, e-health services, and educational services at the grass roots level. Scheduled to be complete by September 2015, the project will provide high-speed broadband Internet to all 250,000 gram panchayats with speeds of up to 100 Mbps.

The NOFN project is being rolled out by Bharat Broadband Network Limited (BBNL), the special-purpose vehicle setup under India’s Department of Telecom. BBNL has divided the project into six packages – East, West, North, South, Central, and Northeast – and separate bids have been accepted in each of the six zones. The total value of this project has been set at $3.3 billion.

“Aksh has always wanted to be a part of this propitious project, and NOFN is in-line with our company’s ever-growing commitment of creating a better and connected world,” said Chetan Choudhari, managing director Aksh Optifibre Ltd. “This project should hopefully usher in a new wave of opportunities for the people living in rural parts of India, giving them better access to governmental services, healthcare and above all education to youngsters.”

Aksh Optifibre reports that that its manufacturing facilities have been retro-fitted to assist with the production of optical fiber cable for the NOFN Project. Overall production capacity has been increased by 25% across the company’s two manufacturing units, one in Bhiwadi, Rajasthan another in Reengus, District Sikar, Rajasthan.

Aksh Optifibre says the $33 million order will have “a huge impact on the company’s bottom line” and also substantially increase its footprint in the Indian domestic market.

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