GFGNL flouts norms, say domestic firms; BSNL flags restrictive conditions

NEW DELHI: The Gujarat Fibre Grid Network Limited (GFGNL), a special purpose vehicle (SPV) has landed in controversy again for allegedly defying the Centre's guidelines in the Amended BharatNet Program (ABP) by imposing an excessive turnover clause that restricts homegrown firms, in a ₹5,700-crore initiative.

The Request for Proposals (RFP) mandates that the sole bidder or consortium must have a minimum audited average annual financial turnover of ₹4,700-crore over the last three financial years, a clause strongly contested by vendors and industry groups.

Meanwhile, several domestic companies have represented to state government officials against the restrictive conditions, arguing that by setting the entry barrier at ₹4,700 crore (or 200% of Capex), GFGNL implemented a restrictive multiplier that directly contradicts the Project Management Consultant (PMC) instructions.


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In a letter dated September 21, 2026, to the GFGNL Managing Director, a Bharat Sanchar Nigam Limited (BSNL) official cautioned against the excessive turnover filter.

Gujarat's SPV directly violates the guidelines issued by BSNL, which acts as the Project Management Consultant (PMC) for the Amended BharatNet Program (ABP) under the state-led model, according to industry executives.

Industry groups argue that the turnover condition creates an artificial barrier to entry, thinning out the competitive landscape and leaving public funds vulnerable to cartelization and uncompetitive pricing.

"The Request for Proposal (RFP) floated by Gujarat Fibre Grid Network Limited (GFGNL) for selecting Project Implementing Agencies (PIAs) contains highly restrictive financial criteria that contradict national procurement guidelines and the explicit directives of the project's central consultant, BSNL. At the heart of the dispute, is an exclusionary clause requiring an audited average annual financial turnover of ₹ 4,700-crore," Rakesh Kumar Bhatnagar, Director General, Voice of Indian Communication Technology Enterprises (VoICE) told ET.

VoICE represents domestic telecom firms and startups.

This is the second time when the state's special purpose vehicle (SPV) bypassed the Centre's norms, allegedly colluding with a handful of biggies.

In April last year, a Delhi-based domestic telecom companies group alleged that RFP floated by GFGNL for BharatNet phase - 3 program was inconsistent with the Centre's policies and guidelines. The state government had to scrap the tender.

Queries sent to GFGNL MD and Secretary, Department of Science & Technology, Gujarat P Bharathi did not elicit any response.

Bhatnagar argued that the GFGNL's current stance conflicts directly with both state and national policy frameworks.

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Citing the Ministry of Finance Manual for Procurement, he said that the annual turnover filters should normally range between 30% and 50% of the estimated contract value to prevent large multinational conglomerates from monopolizing public contracts.

Gujarat State Procurement Policy 2024 explicitly indicates that financial capacity criteria, including turnover metrics, must remain reasonably proportional and not lead to the unreasonable exclusion of capable and technically-capable local vendors.

"Since the Amended BharatNet Program is funded by the Union government through the Digital Bharat Nidhi, GFGNL's restrictive tender rules block qualified local Indian infrastructure firms from bidding, creating an artificial barrier to transparent market competition."

GFGNL and Gujarat's Department of Science & Technology (DST) should take immediate corrective measures, he added.

Eight states are implementing BharatNet, a fully funded digital connectivity program by the Centre, under their own initiatives. These include Chhattisgarh, Gujarat, Jharkhand, Andhra Pradesh, Maharashtra, Odisha and Telangana.

State-controlled BSNL has already awarded 16 packages under the ambitious program which is in different stages of deployment.

The Prime Minister Narendra Modi's prestigious program aims to connect more than 6 lakh villages through 2.5 lakh gram panchayats or village blocks with high-speed internet for the delivery of public services.