₹64 Crore Boost! RailTel Lands Major CPWD ICT Network Project - HUGE Growth Ahead?

RailTel Corporation of India, a public sector undertaking operating under the Ministry of Railways, has announced a significant new project win. The company has received a work order from the Central Public Works Department (CPWD) valued at ₹63.92 crore.

This contract is for the design and implementation of an Information Communication Technology (ICT) network. The scope of work is comprehensive, including the supply, installation, testing, and commissioning (SITC) of the network. Furthermore, RailTel will provide operations and maintenance support for a period of five years post-completion, with the overall execution timeline extending to May 12, 2031.

New Work Order Details

• The work order has been received from a domestic entity, the Central Public Works Department (CPWD).
• RailTel confirmed that neither its promoter nor the promoter group has any interest in the awarding entity, ensuring a transparent transaction.

Scope of Work

• The project involves the entire lifecycle of an ICT network, from initial design to full implementation.
• Key activities include supply of necessary hardware and software, installation, rigorous testing, and final commissioning of the network infrastructure.
• A crucial component is the five-year operations and maintenance support, ensuring the network's long-term functionality.

Contract Value and Duration

• The total value of this significant work order is ₹63.92 crore.
• The execution is planned over several years, with final completion and handover expected by May 12, 2031.

Recent Project Wins

• This new contract adds to RailTel's growing list of project acquisitions. Just recently, the company secured a project worth ₹48.78 crore from the Mumbai Metropolitan Region Development Authority (MMRDA).
• Earlier, RailTel also announced multiple orders from Bihar's education department valued at approximately ₹396 crore, highlighting its diverse project capabilities.

Stock Performance

• Shares of RailTel Corporation of India Ltd closed at ₹329.65 on Thursday, marking a slight decrease of ₹1.85, or 0.56%, on the BSE.

Impact

• The acquisition of this substantial work order is expected to positively impact RailTel's revenue streams and further strengthen its order book. It underscores the company's expertise in ICT infrastructure development and its ability to secure large government contracts.
• Impact Rating: 7/10

Difficult Terms Explained

• ICT (Information Communication Technology): Technology used for communication and information processing, encompassing computers, software, networks, and the internet.
• CPWD (Central Public Works Department): A premier government agency responsible for construction and maintenance of central government buildings and infrastructure.
• SITC (Supply, Installation, Testing, and Commissioning): A common term in procurement defining the vendor's responsibility for delivering, setting up, verifying, and activating a system or equipment.
• Operations and Maintenance (O&M): Ongoing support services that ensure a system or infrastructure functions correctly after its initial implementation.