RailTel Corporation of India Ltd. has received a Letter of Intent (LOI) from Munitions India Limited for a project valued at approximately ₹20.04 crore (including tax). The contract involves setting up a Data Centre (DC) and Disaster Recovery (DR) Center on an Infrastructure as a Service (IaaS) platform for the Q-Shakti project. This significant order underscores RailTel’s growing presence in the cloud and data center services sector and is expected to contribute to its revenue streams.
RailTel Awarded Significant Contract
RailTel Corporation of India Ltd. announced on October 23, 2026, that it has received a Letter of Intent (LOI) from Munitions India Limited. This development is pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Project Details and Value
The LOI pertains to the establishment of a Data Centre (DC) and Disaster Recovery (DR) Center utilizing an Infrastructure as a Service (IaaS) platform. This facility is intended to support the Q-Shakti project and is a domestic contract awarded to RailTel. The estimated size of this order is approximately ₹20,04,04,809/- (Rupees twenty crore, four lakh, four thousand, eight hundred and nine only), inclusive of taxes.
Contract Terms
The contract period includes an initial 6 years for Go-Live, with an option for a further 3 years extension. Payment terms are stipulated as quarterly invoices, and a Performance Bank Guarantee (PBG) of 5% will be required. The project will support Munitions India Limited across 13 locations.
Execution and Reporting
The execution of the order is to be completed by February 28, 2027. RailTel received the LOI on October 23, 2026, at 12:33 PM. The company has confirmed that the promoter/promoter group/group companies have no interest in Munitions India Limited, and the transaction does not fall within related party transactions, maintaining an arms-length basis.
Source: BSE
