RailTel Corporation Enters ₹25.15 Crore Work Order with HPCL for MPLS/ILL Link Services
Introduction
RailTel Corporation of India, the leading telecom infrastructure services provider and a ‘Navratna’ PSU, has created a milestone record by securing a ₹25.15 crore work order from Hindustan Petroleum Corporation Ltd. (HPCL). The order is part of the increasing number of telecom service orders of RailTel with key public sector undertakings.
Details about the HPCL Work Order
As per RailTel’s exchange filing, the work order is a five-year rate contract for:
- Renewal of existing MPLS/ILL (Multi-Protocol Label Switching / Internet Leased Line) connections
- Supply of new connections, as per feasibility in the contract period.
The contract is going to operate from 1 April 2025 to 31 March 2030, facilitating long-term association between HPCL and RailTel. The order value is ₹25,15,24,500, once again establishing RailTel as a prominent telecom services provider of strategic infrastructure requirements.
The news was officially announced on Sunday, 23 March 2025.
Strategic Importance of the Contract
This contract with HPCL is proof of the continued success of RailTel in availing its strong telecom infrastructure for supporting high-profile government and corporate clients. MPLS and ILL services are absolutely essential for secure, high-speed data connectivity, particularly for high-scale operations of organizations such as HPCL.
With this reservation, RailTel will be able to improve its five-year revenue visibility, as well as enhance its position as a trusted vendor of robust and scalable telecom solutions.
About RailTel Corporation of India
RailTel is India’s largest neutral telecom infrastructure provider with a Pan-India optic fiber network across urban, rural, and un-served areas. As a ‘Navratna’ Central Public Sector Enterprise (CPSE), RailTel possesses a robust portfolio of telecommunication services, including:
- MPLS VPNs
- Internet Leased Lines
- Data Center services
- Cloud computing
- System integration and project management
Financial Highlights
In its recent quarterlies, RailTel disclosed:
- Stand-alone profit after tax of ₹65.05 crore in Q3 FY25, up 4.68% year-on-year.
- Revenue from operations increased 14.85% to ₹767.62 crore in Q3 FY25, demonstrating the firm’s robust growth momentum and operating efficiency.
FAQs
- How much work order was awarded to RailTel by HPCL?
RailTel Corporation has received a work order worth ₹25.15 crore from Hindustan Petroleum Corporation Ltd. (HPCL) for telecom services. - What telecom services does this contract of RailTel-HPCL encompass?
Renewal of existing MPLS/ILL connections and new connection as and when necessary during the term of contract, subject to feasibility. - For how many years is this five-year HPCL-RailTel agreement?
The agreement holds for five years, i.e., from 1 April 2025 to 31 March 2030. - What is MPLS/ILL and why?
MPLS (Multi-Protocol Label Switching) and ILL (Internet Leased Line) are fast, secure, and guaranteed data connectivity solutions essential for business operations, particularly for large corporates such as HPCL. - When did the official announcement of this order of work become public?
It was announced on Sunday, 23 March 2025 through an exchange filing. - How is RailTel Corporation to gain from this agreement?
This agreement gives visibility to RailTel’s revenue, establishes it as a core telecommunication partner of PSUs, and showcases it as a capacity to execute mega-sized, long-term telecommunication projects. - What contribution does RailTel make to the telecom infrastructure in India?
RailTel is a ‘Navratna’ central public sector enterprise and one of India’s largest neutral telecom infrastructure firms with a Pan-India optic fiber network over urban and rural terrain. - How was the financial performance of RailTel in Q3 FY25?
RailTel registered a 4.68% increase in standalone net profit at ₹65.05 crore and a 14.85% growth in revenue from operations at ₹767.62 crore in Q3 FY25 compared to Q3 FY24. - Is this order aligned with RailTel’s strategic goals?
Yes, it is aligned with RailTel’s goal of expanding its telecom services presence, especially among core public sector clients, and enhancing its reputation as a reliable supplier of good connectivity solutions. - What are some other services that RailTel provides apart from MPLS/ILL?
Apart from MPLS/ILL, RailTel offers a wide range of services including data center solutions, cloud computing, Wi-Fi solutions, project management, and system integration for various sectors.
Conclusion
RailTel’s fresh order of work from HPCL is an endorsement of its technical capability, infrastructural capability, and favorable client relationship in the telecommunication industry. With the demand for digital infrastructure rising day by day in India, RailTel is ready to provide value-based services and be a part of the story of India’s digital revolution.
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