New Delhi: RailTel Corporation of India Limited has received a Letter of Intent (LoI) from NewSpace India Limited (NSIL) for the upgradation of IT infrastructure, in a contract valued at over ₹31.21 crore (excluding taxes). The order marks another significant win for RailTel in the enterprise digital infrastructure space.
The company disclosed the development in a stock exchange filing dated May 23, 2026, confirming that the LoI was issued on May 22, 2026.
Scope of Work Includes IT Infrastructure Upgrade and Long-Term Maintenance
As part of the contract, RailTel will be responsible for a comprehensive range of services, including:
- Supply of IT infrastructure systems
- Installation and commissioning of upgraded systems
- Operation and maintenance of IT infrastructure
- Upgradation of existing IT systems for NSIL
The project is aimed at strengthening NSIL’s digital backbone and improving operational efficiency through modernized IT solutions.
Read also: RailTel Secures ₹15.67 Crore Railway Signalling Contract from North Western Railway
Project Timeline and Financial Value
The total estimated value of the contract stands at ₹31,21,42,210 (excluding taxes). According to the agreement, RailTel is expected to complete the project by January 31, 2027.
This long-term execution window reflects the complexity and scale of the IT infrastructure upgrade being undertaken for NSIL.
Domestic Contract With Strategic Importance in Space Ecosystem
RailTel clarified that the contract has been awarded by a domestic entity and does not involve any related-party transactions. The company also confirmed that neither its promoters nor promoter group entities have any stake in NSIL.
Industry observers see the deal as strategically significant, given NSIL’s role in India’s expanding space and satellite ecosystem, where robust digital infrastructure is increasingly critical.
RailTel Strengthens Its Digital Infrastructure Portfolio
The latest order further strengthens RailTel’s position in the growing digital services sector. The company has been steadily expanding beyond its core railway communication network into areas such as:
- Enterprise IT infrastructure
- Cloud services
- Cybersecurity solutions
- Government digital transformation projects
This contract adds to RailTel’s increasing portfolio of large-scale managed service and infrastructure assignments.
About RailTel Corporation of India
RailTel Corporation of India Limited is a “Mini Ratna (Category-I)” public sector enterprise under the Ministry of Railways. It operates one of the largest neutral telecom infrastructure networks in the country, leveraging railway right-of-way to provide high-speed broadband, telecom services, and digital solutions across India.
Read also: RailTel Wins AI-Based Surveillance Project at New Delhi Railway Station to Enhance Passenger Safety
