RailTel Corporation of India Limited has bagged a 10-year work order contract to provide end-to-end services for the monetization of Pimpri Chinchwad Smart City Limited’s city network infrastructure. A total revenue generation of INR 700 crores is estimated during the contract period.

Aug 11, 2023

RailTel Corporation of India Limited has bagged a work order from Pimpri Chinchwad Smart City Limited (PCSCL) to provide end-to-end services for the monetization of PCSCL City Network infrastructure on a “revenue sharing model” for a period of ten years. A total revenue of INR 700 crores is estimated during the work order period.

The project includes the establishment of a Network Operation Centre (NOC), the operation and maintenance of existing digital infrastructure connecting citizens, government, businesses, and communities, and the future extension of PCSCL network infrastructure, as well as operations and maintenance activities during the contract period. RailTel will also provide the required cores of fiber cable for providing connectivity to smart city elements for a digitally connected ecosystem.

Watch: RR Kabel | Solar Cables | Solar Plant | Renewable Energy

RailTel will generate revenue through lease deals and will pay PCSCL INR 32.4 crore of fixed revenue out of an estimated INR 70 crore of annual revenue. The company will also pay a minimum of 21 percent of the total increased revenue produced over the next ten years.

The city of Pimpri Chinchwad is located in the Pune metropolitan area and the work order is a first-of-its-kind to monetize a Smart City’s telecom infrastructure. PCSCL is aiming for self-sustenance and evolution of its creditworthiness in order to raise new resources from the market.

Also Read: RIL’s Jio Reports USD 2.2 Billion Fund Support from Swedish Export Credit Agency for 5G Rollout

Mr. Sanjai Kumar, Chairman and Managing Director of RailTel, said, “We are thrilled to collaborate with PCSCL in this transformative journey. RailTel is committed to creating a digitally connected city that embraces innovation, inclusivity, and economic growth. RailTel is eager to embark on this transformative venture and looks forward to working closely with PCSCL to achieve its vision of a digitally advanced and prosperous city,”

RailTel is a CPSU under the Ministry of Railways and boasts of a strong and reliable network of 61000+ RKM of OFC, and two MeitY empanelled Tier III data centers.