APAR Industries has recently announced a 15-year agreement to monetize approximately 6,100 kilometers of OPGW (Optical Ground Wire) fiber networks in Karnataka, marking a significant expansion into the dark fiber monetization sector. The contract was awarded to APAR Transmission & Distribution Project Private Limited (ATDPPL), a wholly-owned subsidiary of APAR Industries, by the Karnataka Power Transmission Corporation Limited (KPTCL) following a competitive bidding process. This strategic move aligns with the increasing demand for reliable data connectivity solutions, particularly among telecommunications service providers.

The partnership with KPTCL allows ATDPPL to operate, maintain, and monetize the existing OPGW network, which is sought after due to its high network uptime and reliability. Under this arrangement, ATDPPL will lease the network capacity to telecom companies, generating a recurring revenue stream from dark fiber utilization. The expected benefits of this venture include establishing APAR as a key player in the OPGW network infrastructure segment and enhancing its relationships with telecom and data center companies across India. The revenue-sharing model will see cash flows split between ATDPPL and KPTCL in a 60:40 ratio, ensuring a consistent income for both parties over the agreement's duration.

Importantly, there will be no capital expenditure required for this project during the agreement's term. ATDPPL will pay an annual network rental fee of ₹5 crore for the 15-year duration. This move not only diversifies APAR's business operations but also positions the company to capture emerging opportunities in the communications infrastructure market. As the demand for high-capacity data networks continues to grow, APAR's entry into the OPGW sector could yield significant financial benefits while addressing the needs of telecom service providers and ISPs in the region.