RailTel receives a ground-breaking order to monetize telecom infrastructure

RailTel would pay PCSCL an annual fixed revenue payment of Rs 32.4 crore from its anticipated annual income of Rs 70 crore.

An unprecedented order has been sent to RailTel, a significant internet service provider that is part of the Ministry of Railways. An ANI report stated that the Pimpri Chinchwad Smart City (PCSCL) has given the order to deliver end-to-end services under the "revenue sharing model" for the ten-year monetisation of PCSCL City Network Infrastructure. Through this work order, RailTel anticipates making roughly Rs 70 crore in income annually. 700 crores in the following ten years would be the result.

Pimpri Chinchwad, the fifth-largest city in Maharashtra and the 18th most populous city overall, is part of the Pune region. Leasing contracts are how RailTel plans to make money. RailTel would pay PCSCL an annual fixed revenue payment of Rs 32.4 crore from its anticipated annual income of Rs 70 crore.

In addition, RailTel will be required to pay PCSCL 21% of the excess revenue it generates over the course of the 10 years. RailTel will establish a Network Operation Centre (NOC) as part of the project. In addition, RailTel will be responsible for managing the upkeep and administration of the city's current digital infrastructure. RailTel will be responsible for ensuring that numerous city areas, businesses, and government offices receive ongoing connectivity from both existing and upcoming infrastructure.

In order to develop a digital environment for its residents and to deliver connected, effective, and responsive city services (PCMC, PCSCL, and Police), RailTel shall also provide PCSCL with the necessary cores of fibre cable. The highest cost method (H1)-based rigorous and open competitive bidding process was used to secure this deal.

Making PCSCL self-sufficient and highly creditworthy so that it can obtain resources from the market as and when needed is another goal of the project. RailTel will be able to monetize PCSCL's telecom duct network infrastructure and OFC in all key locations, including police stations, high-traffic zones, crucial intersections, PCMC offices, and more.

The fact that RailTel, a Central Public Sector Enterprise under the Ministry of Railways, owns a pan-India optic fibre network covering numerous towns and cities as well as rural areas of the country makes it noteworthy that it is one of the largest neutral telecom infrastructure and ICT Solutions and Services providers in the nation.

In addition to a robust and dependable network of 61000+ RKM of optical fibre, RailTel also operates two tier III data centres accredited by MeitY. With its high-capacity pan-India network, RailTel is advancing the knowledge society on many fronts and has been chosen to carry out a number of mission-mode telecom projects for the Indian government.