RailTel Receives ₹162.58 Crore Order from IRCON for Sivok-Rangpo Rail Line Telecommunication Work. The project's completion by 2026 could impact RailTel's share prices.
Railway PSU Stock: RailTel Corporation of India (RailTel) has received a work order worth ₹162.58 crore from IRCON International (IRCON), a leading company in the railway sector. This order encompasses the provision of railway general telecommunication systems and tunnel communication work for the Sivok-Rangpo New BG rail line project under the Northeast Frontier Railway (NF Railway). The project's total value is ₹1,62,58,96,785, with a planned completion date of March 28, 2026.
RailTel: A Leading Telecom Infrastructure Company in India
RailTel Corporation of India is a 'Navratna' Public Sector Undertaking (PSU) and one of India's leading telecom infrastructure companies. It owns the extensive optical fiber network of Indian Railways, providing digital connectivity to urban and rural areas across the country. Furthermore, RailTel provides telecommunication and internet services to numerous government and corporate organizations.
IRCON International: A Leader in Railway and Infrastructure
IRCON International is also a 'Navratna' PSU specializing in turnkey construction projects. Its core competency lies in railway and highway construction. Besides India, IRCON is working on various infrastructure projects in countries such as Malaysia, Nepal, Bangladesh, South Africa, Algeria, Myanmar, and Sri Lanka. The company plays a crucial role in several key projects of Indian Railways.
Performance of RailTel and IRCON Shares
On Friday, March 28, 2025, RailTel Corporation's shares closed at ₹302.70 on the BSE, down by 1.70%. Meanwhile, IRCON International's shares closed at ₹156.30, down by 2.16%. Amidst market fluctuations, investors are keenly observing the impact of this new work order.
Indian stock exchanges will be closed on Monday, March 31, 2025, due to the Eid holiday. Subsequently, potential volatility in RailTel and IRCON shares may be observed as investors assess the implications of this new contract.
What does this order mean for RailTel?
This work order will further strengthen RailTel's telecom and railway infrastructure capabilities. Successful project execution is expected to bolster the company's financial position. Additionally, it will further solidify RailTel's relationship with the Ministry of Railways and other government agencies.
RailTel's participation in this project will help expand its telecommunication and digital connectivity services. Furthermore, it will maintain RailTel's crucial role in the modernization and digitalization of Indian Railways.
