RailTel Corporation of India has received a Letter of Acceptance from the Haryana State Electronics Development Corporation for a rate contract valued at an estimated Rs. 474 mn, including tax. The contract covers structured local area network services for government departments in Haryana, Chandigarh and the Delhi National Capital Region.

The work involves the supply, installation, testing and commissioning of structured LAN infrastructure at various locations. RailTel said in a stock exchange filing that the contract is domestic and that there was no delay in disclosing the order.

The arrangement is a rate contract rather than a fixed-volume order. The Haryana agency will issue purchase orders from time to time according to its requirements, meaning the estimated value mentioned in the Letter of Acceptance is not a guaranteed order value.

RailTel stated that its promoter, promoter group and group companies have no interest in the agency awarding the contract. The company also said the transaction does not fall under related-party transactions. The filing was issued with the approval of the Executive Director, Northern Region.

RailTel is a Navratna public sector undertaking under the Ministry of Railways and provides telecom infrastructure and information and communications technology services. Incorporated in 2000, it operates an optical fibre network spanning about 62,000 route kilometres along railway tracks and provides public Wi-Fi at more than 6,000 railway stations.

Its portfolio includes MPLS VPN, leased lines, tower co-location, data centre and cloud services, along with retail broadband under the RailWire brand. RailTel received Navratna status in August 2024. Its shares fell 1.9 per cent intraday on October 21, while the stock had declined 5.74 per cent over the previous month.