RailTel Wins ₹70.93 Crore Contract from Eastern Railway for Communication Infrastructure Upgrade
Team FS
27/Aug/2024

Key Points
1: RailTel Secures ₹70.93 Crore Contract
RailTel Corporation has successfully won a significant work order worth ₹70.93 crore from Eastern Railway for the enhancement of its communication infrastructure.
2: Unified Communication Infrastructure Implementation
The project involves the implementation of Unified Communication Infrastructure, including LAN upgrades, IP exchange, VoIP communication, and an IP-MPLS based network.
3: Completion by November 2025
The project is scheduled to be completed by November 25, 2025, significantly modernizing and enhancing the communication systems within Eastern Railway.
RailTel Corporation of India Ltd., a leading public sector company under the Ministry of Railways, has been awarded a substantial contract by Eastern Railway. The contract, valued at ₹70,93,58,570 (including taxes), is a major step forward in the ongoing efforts to modernize the Indian Railways' communication systems. This work order involves the comprehensive implementation of a Unified Communication Infrastructure across the Eastern Railway network, which is expected to significantly enhance the efficiency and reliability of its operations.
The work order, which was formally awarded on August 26, 2024, is a major milestone for RailTel and showcases the company's expertise in delivering advanced communication solutions. The project will involve several critical upgrades and implementations, each designed to improve the overall communication framework of Eastern Railway.
Key components of the project include:
LAN Infrastructure Upgrade: RailTel will undertake a significant upgrade of the existing Local Area Network (LAN) infrastructure across Eastern Railway. This enhancement is crucial for ensuring that data and communications can flow seamlessly across various departments and locations within the railway network. The upgraded LAN will support faster, more reliable data transmission, which is vital for the smooth operation of railway services.
IP Exchange Implementation: A central part of the project is the deployment of an IP exchange system. This modern communication system will replace outdated frameworks, enabling more efficient and scalable communications across the railway network. The IP exchange will act as a hub for managing and routing communications, facilitating better coordination and information sharing across the network.
VoIP-Based Control Communication: The project will also include the integration of Voice over IP (VoIP) technology into Eastern Railway's control communication systems. VoIP will replace traditional voice communication systems, offering clearer, more reliable, and cost-effective communication channels. This upgrade is expected to enhance the quality of voice communications, which is essential for the safe and efficient management of railway operations.
IP-MPLS Based Network Deployment: RailTel will also deploy an IP-MPLS (Multiprotocol Label Switching) based network as part of the project. This network will serve as a robust backbone for all communication services, ensuring high availability and low latency across the Eastern Railway network. The IP-MPLS network is designed to handle increasing demands for bandwidth and to support the next generation of railway communication applications, including real-time data services and advanced security measures.
The successful implementation of this project will have a far-reaching impact on Eastern Railway's operations. By modernizing its communication infrastructure, Eastern Railway will be able to enhance its operational efficiency, reduce downtimes, and improve overall safety across its network. The upgraded systems will also provide a scalable platform capable of supporting future technological advancements, such as the integration of Internet of Things (IoT) devices and the use of advanced analytics for operational decision-making.
For RailTel, this contract is more than just a significant business win—it represents a strategic opportunity to reinforce its role as a key player in the telecom infrastructure sector, particularly within the railway industry. The contract highlights RailTel's capability to deliver large-scale, complex projects that are critical to the nation's infrastructure development.
The project is scheduled for completion by November 25, 2025. RailTel, known for its timely and efficient execution of telecom projects, will be leading the project from start to finish. The company will be responsible for the entire process, including planning, design, installation, and testing of the new systems. RailTel’s team of experienced professionals will ensure that the project is completed on time and meets the highest standards of quality and performance.
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The ₹70.93 crore contract is expected to have a positive impact on RailTel’s financial performance, contributing to both revenue and profitability over the course of the project. This project will not only generate substantial income for RailTel but will also strengthen its position as a preferred partner for future infrastructure projects within the railway sector.
RailTel’s contract with Eastern Railway complies with all necessary regulatory requirements, including those outlined by the Securities and Exchange Board of India (SEBI). The project does not involve any related party transactions, ensuring that it is conducted at an arm’s length and adheres to the highest standards of corporate governance.
RailTel’s new contract with Eastern Railway is a significant achievement that underscores the company’s leadership in the telecom infrastructure space. The project will play a crucial role in modernizing the communication systems of one of India's busiest railway zones, ensuring more efficient and reliable operations.
As RailTel continues to grow and expand its portfolio of telecom projects, this contract will serve as a benchmark for future endeavors, both within India and on the international stage. The successful completion of this project will not only benefit Eastern Railway but will also enhance RailTel’s reputation as a trusted partner in the digital transformation of India’s infrastructure.
This project, when completed, will set new standards for railway communication infrastructure in India and potentially open doors for similar projects across the country. RailTel's commitment to innovation, excellence, and timely delivery will be key to the success of this ambitious project.
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