Sterlite Technologies eyes defence contract worth Rs 7,000 cr

New Delhi: Enthused with winning a defence project worth Rs 2,500 crore, NRI billionaire Anil Agarwal-led Sterlite Technologies is now vying for another strategic project in the sector worth Rs 7,000 crore.

The optical fibre manufacturer is also connecting defence establishments in Jammu & Kashmir with high-speed optical fibres.

"We are also vying for other defence projects. We already have one project for Rs 2,500 crore, which is essentially an army project. We have already bid for another army project worth Rs 7,000 crore," Sterlite Technologies Non-Executive Chairman Anil Agarwal told PTI.

Agarwal, who is also the Chairman of mining giant Vedanta Resources, said the company is bullish on the defence sector.

The company's CEO Anand Agarwal said Sterlite produces state-of-the-art optical fibres, which can compete with the best globally.

"Our value proposition is among the best globally and above all, we fulfill the requirements for the 'Make in India' programme," he added.

Sterlite is also the biggest provider for Prime Minister Narendra Modi's ambitious BharatNet project, which is estimated to cost the government over Rs 72,000 crore.

National Optical Fibre Network (NOFN) or BharatNet, which forms the backbone of the Digital India initiative, seeks to connect 2.5 lakh gram panchayats with high-speed broadband by December, 2017.
The project cost is estimated to be around Rs 72,778 crore.

Anil said the firm will play the role of optical fibre manufacturer, network creator, network designer, network manager and maybe even in the space of specialised services.

"At the moment, we will make optical fibres, which is a very big business. Then, we are doing this complete Digital India's massive network, that is 60-70 per cent is to be created.

"You have to create software, you have to get best international people to supply equipment, put things together. So that is the focus we have," he added.

Moving ahead with economic sector reforms, the Cabinet in August last year had raised FDI ceiling in the sensitive defence sector to 49 per cent from 26 per cent, with the condition that control of the joint venture defence equipment manufacturing will remain in Indian hands.

The move was aimed at boosting domestic industry of a country which imports up to 70 per cent of its military hardware.