Industry Odisha Bureau, Sep 24: Domestic firms say a ₹4,700-crore turnover rule in GFGNL’s ₹5,700-crore BharatNet tender shuts them out. BSNL, the programme’s consultant, has also cautioned the Gujarat SPV. Gujarat has yet to respond.
A ₹5,700-crore rural broadband tender in Gujarat has run into fresh controversy. At issue is a single eligibility condition: turnover. Gujarat Fibre Grid Network Limited (GFGNL), the state’s special purpose vehicle (SPV), floated the tender. It falls under the Amended BharatNet Programme, funded by the Centre. Domestic telecom firms accuse the SPV of defying the Centre’s guidelines. GFGNL has not publicly answered those charges.
A steep entry bar
The Request for Proposal sets a demanding financial test. A sole bidder or consortium needs an audited average annual turnover of ₹4,700 crore. That average is measured across the previous three financial years. Industry executives say the bar equals roughly 200% of the relevant capex benchmark.
Several domestic companies have taken their objections to state officials. VoICE, which represents domestic telecom firms and start-ups, has joined the objections. Its director general, Rakesh Kumar Bhatnagar, cites the Ministry of Finance’s procurement manual. According to him, turnover filters normally range between 30% and 50% of contract value. On that basis, the bar would sit between roughly ₹1,710 crore and ₹2,850 crore.
The association also invokes the Gujarat State Procurement Policy 2024. It argues that policy requires financial criteria to stay proportionate. Capable local vendors, it says, should not be excluded unreasonably.
BSNL raises a flag
BSNL’s involvement gives the dispute added weight. The state-run operator is Project Management Consultant for the programme’s state-led model. On September 21, a BSNL official wrote to GFGNL’s managing director. The letter cautioned against the high turnover filter.
Friction between a central consultant and a state agency raises a wider question. Should eligibility standards differ across states implementing the same programme? GFGNL and Gujarat’s Department of Science and Technology had not responded to media queries.
Capacity versus competition
Turnover rules serve a real purpose in large infrastructure contracts. They signal financial capacity and experience with big projects. They also suggest bidders hold enough working capital to absorb delays. For a ₹5,700-crore rollout, execution risk is substantial.
Yet a very high threshold carries its own costs. It can shrink the bidder pool and sideline technically capable smaller firms. Bidding may then concentrate among a few large companies. Industry groups warn this could invite cartelisation and weaker price competition. The opposing view holds that financially stronger bidders lower the risk of stalled work. Neither outcome is certain.
Gujarat has faced this before. In April 2025, domestic firms objected to an earlier GFGNL tender for BharatNet Phase 3. They argued it clashed with central policies, and the tender was scrapped. That episode does not establish any wrongdoing in the current process.
Why the stakes are high
BharatNet is the Centre’s flagship rural connectivity programme. It aims to link over 6 lakh villages via about 2.5 lakh gram panchayats. Funding flows through Digital Bharat Nidhi. Several states, including Gujarat, run projects under the state-led model. BSNL has already awarded 16 packages under the wider programme.
How Gujarat resolves this controversy could shape costs and timelines. It may also test how consistently the Centre’s guidelines apply across states.
