A ₹5,700-crore Gujarat BharatNet tender is facing criticism for demanding high turnover eligibility. Industry players and consultants suggest the terms are too strict and clash with national guidelines, raising risks of potential tender delays or revisions for the digital connectivity project.
The tender for the Amended BharatNet Program in Gujarat, aimed at improving rural digital connectivity, has encountered significant resistance. Gujarat Fibre Grid Network Limited (GFGNL) launched the project with an estimated value of ₹5,700 crore. However, the process is now under scrutiny due to the high financial eligibility criteria set for companies wanting to bid for the contract.
GFGNL has requested that bidders show an average annual financial turnover of ₹4,700 crore. Industry representatives and Bharat Sanchar Nigam Limited (BSNL), which is acting as the project consultant, have raised concerns that this figure is excessively high. Critics argue that the threshold is nearly 200% of the project’s total estimated cost, which they believe creates an artificial barrier that prevents many qualified local infrastructure providers from competing.
According to the Union Ministry of Finance Manual for Procurement, criteria for financial turnover are usually expected to be between 30% and 50% of the estimated contract value. The current requirement set by GFGNL is significantly higher than these standard guidelines, leading to suggestions that it may inadvertently favour large conglomerates while limiting participation from smaller, local technology firms.
The project is backed by funding from the central Digital Bharat Nidhi, intended to bring high-speed internet to over 6 lakh villages. BSNL has formally communicated these concerns to the managing director of GFGNL, highlighting the potential conflict between the state's tender rules and national government guidelines.
This situation echoes previous difficulties in the state's digital infrastructure planning. In April 2025, the Gujarat government had to cancel a tender for the third phase of the BharatNet program after facing similar complaints regarding its consistency with central policies.
For investors and companies tracking the digital infrastructure sector, the key development to watch is whether the Gujarat government chooses to revise the tender terms. A potential revision of the financial criteria could increase participation and improve competitiveness. Conversely, if the requirements remain unchanged, it may lead to further delays in the project or potential regulatory challenges, given the precedent of previous tender cancellations. The market will monitor the response from the Gujarat Department of Science and Technology to determine the next steps for this digital connectivity project.