New Delhi: RailTel Corporation of India Limited has received a work order worth ₹164.79 crore, including taxes, from Western Coalfields Limited (WCL) for establishing a Multiprotocol Label Switching Virtual Private Network (MPLS VPN) on a rental basis for 60 months.
RailTel disclosed the order through a stock exchange filing. The work order was received at around 6 PM on August 19, 2026, and the project has been classified as a domestic contract.
RailTel to Establish MPLS VPN Network for Western Coalfields
Under the contract, RailTel will establish an MPLS VPN network for Western Coalfields and provide the network services on a rental basis for a period of 60 months.
An MPLS VPN enables an organisation to connect multiple offices and operational locations through a private network. It allows employees and systems at different sites to exchange data efficiently while keeping business traffic separate from the public internet.
The network is expected to support Western Coalfields’ operations by providing secure and efficient communication and data transmission capabilities across its locations.
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Contract to Run for 60 Months
The project is a long-duration contract with an execution period of 60 months.
According to the filing:
- Order value: ₹164.79 crore, including taxes
- Order awarded by: Western Coalfields Limited
- Project: Establishment of MPLS VPN network
- Contract type: Domestic
- Service model: Rental basis
- Contract period: 60 months
- Order date: August 19, 2026
- Scheduled completion: September 20, 2031
The filing did not disclose details regarding the specific project locations, implementation schedule, payment stages or the expected annual revenue contribution from the contract.
Order Strengthens RailTel’s Network Services Portfolio
The contract adds a long-duration network services project to RailTel’s business portfolio and strengthens its presence in providing digital communication infrastructure to large public sector organisations.
The five-year rental arrangement could provide greater revenue visibility over the contract period, although actual revenue recognition will depend on project execution and the terms of the agreement.
The order also highlights the increasing role of digital communication and network infrastructure in supporting operations across India’s industrial and public sector ecosystem.
No Related-Party Transaction
RailTel clarified in its filing that its promoters or group companies have no direct interest in Western Coalfields Limited.
The company also stated that the order does not fall under related-party transactions. Therefore, the contract has been awarded independently and does not involve a transaction between connected entities.
Why the RailTel Order Matters
The ₹164.79 crore contract is significant for RailTel as it adds a multi-year rental-based project to its order portfolio.
The project is expected to:
- Strengthen RailTel’s network services business
- Expand its engagement with the coal and mining sector
- Provide a five-year service opportunity
- Support secure communication infrastructure for WCL
- Enhance RailTel’s digital infrastructure portfolio
The contract also reflects the growing integration of advanced communication networks into India’s industrial operations.
About RailTel Corporation of India
RailTel Corporation of India Limited is a Central Public Sector Enterprise under the Ministry of Railways. It is one of India’s major providers of telecommunications and digital infrastructure services, with businesses spanning telecom, broadband, data connectivity, network infrastructure and technology solutions.
About Western Coalfields Limited
Western Coalfields Limited (WCL) is a subsidiary of Coal India Limited engaged in coal mining operations. The company operates coal mines primarily in the states of Maharashtra and Madhya Pradesh and supplies coal to key sectors of the Indian economy, including power and industrial users.
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