State-run telecom equipment manufacturer ITI has won a Letter of Intent (LoI) from RajCOMP Info Services, a Rajasthan Government undertaking, to execute the RajNet project valued at ₹334 crore. Under the project, ITI will set up 40,000 outdoor WiFi access points in Rajasthan.

It will supply, install and maintain outdoor WiFi access points along with associated RF radio equipment for six months. This will be followed by operation and maintenance of the network for five years, the company said in a statement.

In August 2018, ITI – a public sector unit under the Department of Telecommunications (DoT) – had emerged as the lowest bidder for the RajNet project.

“ITI has been involved in the implementation of the Digital India programme in various Indian states. This order from the Rajasthan Government to establish outdoor WiFi access points in the State is expected to enhance the broadband accessibility in remote villages and complement the efforts of Bharatnet Phase I and II to provide last-mile connectivity in far-flung areas of the country,’’ K Alagesan, Chairman and Managing Director, ITI, said.

The RajNet project is expected to provide connectivity till the Gram Panchayat level through broadband, SATCOM, Over-the-Air (OTA), Local Area Network (LAN) and Structured Wireless-Aware Network (SWAN), among others.

Earlier in October, ITI had filed draft papers for a follow on public offering (FPO) with SEBI, a move that will help it meet the minimum 25 per cent public shareholding rules. The company plans to issue fresh shares worth up to 18 crore, while an additional 5 per cent of the net issue will be reserved for employees.

It intends to use the net proceeds worth ₹642.60 crore of the issue for working capital requirements and ₹638.40 crore for repayment of loan. Funds for the general corporate purpose were to be finalised after deciding on the issue price.

BOB Capital Markets, Karvy Investor Services and PNB Investment Services are the Book Running Lead Managers to the issue.