Mumbai: RailTel Corporation of India has received a work order worth Rs 164.79 crore from Western Coalfields Limited for setting up a secure communications network.
The company disclosed the order in a stock exchange filing. The contract value includes taxes.
Network project for coal company
Under the order, RailTel will establish a Multiprotocol Label Switching Virtual Private Network, or MPLS VPN, for Western Coalfields.
An MPLS VPN allows an organisation to connect offices through a private network. It can help employees and systems exchange data across sites while keeping business traffic separate from the public internet.
The network will be provided on a rental basis for 60 months. This means RailTel will establish and support the system while Western Coalfields uses the service during the period.
Completion scheduled by 2031
According to the filing, the contract must be executed by September 20, 2031.
RailTel received the work order at 6 pm on August 19, 2026. The company classified it as a domestic contract because Western Coalfields is an Indian entity.
The filing did not provide details about the project's locations, implementation schedule, payment stages or expected contribution to RailTel's annual revenue.
No related-party link
RailTel said its promoters or group companies do not have any direct interest in Western Coalfields.
It also clarified that the order does not fall under related-party transactions. Therefore, the contract has been awarded independently and involves no transaction between connected entities.
Why the order matters?
The contract strengthens RailTel's order book and adds a long-duration rental project to its business portfolio. Its five-year service period could provide revenue visibility, although actual income recognition will depend on execution and contract terms.
The project will support Western Coalfields' need for secure and reliable connectivity across its operations.
RailTel informed the National Stock Exchange and BSE about the development under Regulation 30 of the SEBI listing rules, which requires listed companies to disclose material orders and business developments to investors.
Disclaimer: This article is based on information disclosed by RailTel Corporation of India in its official regulatory stock exchange filing.
