Industry Raises Concerns Over Gujarat Fibre Grid’s Rs 47 Billion Turnover Eligibility Rule

Industry Raises Concerns Over Gujarat Fibre Grid’s Rs 47 Billion Turnover Eligibility Rule

Summary:
Gujarat Fibre Grid Network Limited (GFGNL) is facing objections from domestic telecom companies and industry groups over a Rs 47 billion annual turnover requirement in its Amended BharatNet Programme (ABP) tender. Industry stakeholders, supported by concerns raised by BSNL, argue that the threshold is excessively high and could exclude small and medium-sized Indian vendors, reducing competition. They have urged GFGNL and Gujarat government officials to revise the eligibility condition, which they say does not align with ABP procurement guidelines. 

Gujarat Fibre Grid Network Limited (GFGNL) is reportedly facing concerns from domestic telecom operators and industry associations regarding a financial eligibility criterion included in its tender under the Amended BharatNet Programme (ABP). Industry participants have claimed that the specified turnover threshold is unusually high and may prevent several Indian vendors from taking part in the bidding process.

According to the request for proposals (RFP), a single bidder or consortium must demonstrate a minimum audited average annual turnover of Rs 47 billion during the previous three financial years. Industry representatives have questioned the condition, noting that it amounts to nearly 200 per cent of the project’s projected capital expenditure and could create difficulties for small and medium-sized Indian companies seeking to participate.

A number of domestic firms have brought the matter to the attention of Gujarat government officials and requested changes to the eligibility requirements. They have maintained that the turnover criterion does not align with the procurement provisions prescribed for the ABP.

Bharat Sanchar Nigam Limited (BSNL), serving as the project management consultant (PMC) for the ABP under Gujarat’s state-led implementation model, has also expressed reservations about the financial criterion. In a letter issued on September 21, 2026, a BSNL official advised GFGNL to reconsider what was described as an overly restrictive financial eligibility requirement.

Industry stakeholders have further stated that such a high turnover threshold could significantly narrow the pool of qualifying bidders, potentially reducing competition and influencing the competitiveness of the tendering process.

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