RailTel to set Telecom Infrastructure for Pimpri Chinchwad Smart City

16 Aug 2023 CW Team

This particular opportunity marks a pioneering achievement for RailTel, as it signifies the first instance of the company engaging in the monetisation of telecommunications infrastructure within the context of a Smart City. Notably, the city in focus, Pimpri Chinchwad, is situated in the Pune region and ranks as the eighteenth most populous city in India, as well as the fifth-largest within the state of Maharashtra. The monetisation process will primarily involve RailTel generating revenue through leasing agreements.

According to an official statement by RailTel, the anticipated annual revenue is projected to reach Rs 0.7 billion, culminating in a total revenue of Rs 7 billion over the course of the ten-year period. Of this, RailTel has committed to remitting Rs 324 million as a fixed revenue payment to PCSCL each year.

Furthermore, RailTel has agreed to provide an additional revenue share amounting to a minimum of 21 per cent over the entire incremental revenue generated during the ten-year timeframe. The comprehensive project also encompasses the establishment of a Network Operation Centre (NOC), the management and upkeep of the existing digital infrastructure that connects citizens, government bodies, enterprises, and communities. It also includes the prospective expansion of PCSCL's network infrastructure, accompanied by the related operational and maintenance duties spanning the same decade, as outlined in the statement.

RailTel will also furnish PCSCL with the essential fibre cable cores necessary for establishing connectivity across various elements of the smart city, spanning the entirety of the Pimpri Chinchwad Municipal Corporation (PCMC) area. This initiative is intended to create a digitally interconnected ecosystem aimed at enhancing citizen experiences and facilitating streamlined, efficient, and responsive urban services offered by PCMC, PCSCL, and the local police department. The acquisition of this order was secured through a rigorous and transparent competitive bidding process, leveraging the highest Cost Method (H1).

Commenting on this significant undertaking, Sanjai Kumar, the Chairman and Managing Director of RailTel, expressed enthusiasm about the collaboration with PCSCL on this transformative endeavour. He highlighted RailTel's role as a leading neutral telecom infrastructure provider within the country. Kumar conveyed his excitement about the prospect of jointly fostering a digitally advanced and prosperous city, aligned with principles of innovation, inclusivity, and economic advancement, as envisioned by PCSCL.

RailTel, categorised as a Mini Ratna Public Sector Undertaking (PSU) operating under the jurisdiction of the Ministry of Railways, has received a significant assignment from Pimpri Chinchwad Smart City (PCSCL). This task involves delivering comprehensive services for the monetisation of PCSCL's City Network Infrastructure, following a revenue sharing model spanning duration of 10 years.This particular opportunity marks a pioneering achievement for RailTel, as it signifies the first instance of the company engaging in the monetisation of telecommunications infrastructure within the context of a Smart City. Notably, the city in focus, Pimpri Chinchwad, is situated in the Pune region and ranks as the eighteenth most populous city in India, as well as the fifth-largest within the state of Maharashtra. The monetisation process will primarily involve RailTel generating revenue through leasing agreements.According to an official statement by RailTel, the anticipated annual revenue is projected to reach Rs 0.7 billion, culminating in a total revenue of Rs 7 billion over the course of the ten-year period. Of this, RailTel has committed to remitting Rs 324 million as a fixed revenue payment to PCSCL each year.Furthermore, RailTel has agreed to provide an additional revenue share amounting to a minimum of 21 per cent over the entire incremental revenue generated during the ten-year timeframe. The comprehensive project also encompasses the establishment of a Network Operation Centre (NOC), the management and upkeep of the existing digital infrastructure that connects citizens, government bodies, enterprises, and communities. It also includes the prospective expansion of PCSCL's network infrastructure, accompanied by the related operational and maintenance duties spanning the same decade, as outlined in the statement.RailTel will also furnish PCSCL with the essential fibre cable cores necessary for establishing connectivity across various elements of the smart city, spanning the entirety of the Pimpri Chinchwad Municipal Corporation (PCMC) area. This initiative is intended to create a digitally interconnected ecosystem aimed at enhancing citizen experiences and facilitating streamlined, efficient, and responsive urban services offered by PCMC, PCSCL, and the local police department. The acquisition of this order was secured through a rigorous and transparent competitive bidding process, leveraging the highest Cost Method (H1).Commenting on this significant undertaking, Sanjai Kumar, the Chairman and Managing Director of RailTel, expressed enthusiasm about the collaboration with PCSCL on this transformative endeavour. He highlighted RailTel's role as a leading neutral telecom infrastructure provider within the country. Kumar conveyed his excitement about the prospect of jointly fostering a digitally advanced and prosperous city, aligned with principles of innovation, inclusivity, and economic advancement, as envisioned by PCSCL.