RailTel, a Mini Ratna PSU under the Ministry of Railways, has won a contract to monetize the telecom infrastructure of Pimpri Chinchwad Smart City, located in the Pune area in Maharashtra, India. This marks the first of its kind order for RailTel to monetize the telecom infrastructure of a Smart City.
Under the contract, RailTel will provide end-to-end services for the monetization of Pimpri Chinchwad Smart City Limited’s (PCSCL) City Network Infrastructure on a revenue sharing model for a period of 10 years. RailTel will generate revenue through leasing arrangements during this time.
According to the official statement from RailTel, the projected estimated annual revenue is Rs 70 crore, amounting to a total revenue of Rs 700 crore over the 10-year period. RailTel will pay Rs 32.4 crore of fixed revenue to PCSCL annually, along with a minimum of 21 percent in additional revenue to PCSCL over the total generated revenue.
The project involves the establishment of a Network Operation Centre (NOC) and the operations and maintenance of the existing digital infrastructure connecting citizens, government, businesses, and communities. RailTel will also manage the future extension of PCSCL network infrastructure for 10 years.
Additionally, RailTel aims to make PCSCL a self-sustainable organization and improve its creditworthiness for raising additional resources from the market. The company plans to lease spare ducts and poles to monetize the OFC and Telecom duct network infrastructure of PCSCL, covering critical areas such as PCMC offices, police stations, critical junctions, and footfall areas.
RailTel will also provide the required fiber cable cores to PCSCL for connectivity across the city, creating a digitally connected ecosystem for its citizens. The goal is to offer connected, efficient, and responsive city services to the residents and various stakeholders.
Expressing enthusiasm about the project, Sanjai Kumar, Chairman and Managing Director of RailTel, stated that RailTel is excited to collaborate with PCSCL in this transformative journey. RailTel aims to create a digitally connected city that embraces innovation, inclusivity, and economic growth. The company looks forward to working closely with PCSCL to achieve its vision of a digitally advanced and prosperous city.
RailTel, as a Central Public Sector Enterprise under the Ministry of Railways, is renowned as one of the largest neutral telecom infrastructure and ICT Solutions and Services providers in India. With its extensive pan-India optic fiber network spanning towns, cities, and rural areas, RailTel aims to create a knowledge society and has been selected for various mission mode projects by the Government of India in the telecom field.
