RailTel Share Price in Focus; Selects Techno Electric to Develop 10MW Data Centre in Noida

RailTel Corporation of India Ltd has announced a strategic partnership with Techno Electric & Engineering Co. Ltd (TECL) to establish a 10MW Data Centre in Noida.

The company stated that the project will be implemented in phases and is based on a revenue-sharing model, where RailTel will provide land and earn a fixed percentage of the revenue generated.

Selection Through Open Tender Process

TECL was chosen as the Managed Service Data Centre Partner through a transparent, open tender process. The project will be set up on RailTel’s land in Noida, aligning with RailTel's broader goals of leveraging its infrastructure for new-age digital services.

30-Year Contract Term with Potential Extension

The project has a contract duration of 30 years, including the time taken for implementation. Both parties may choose to extend the partnership further by mutual agreement. The long-term structure of the agreement indicates a significant strategic investment in digital infrastructure development.

Revenue Sharing Model to Boost RailTel’s Earnings

While the exact earnings from the partnership cannot be estimated at this stage, RailTel has confirmed that it will receive a fixed percentage of revenue generated from the Data Centre’s operations. This structure ensures steady income for RailTel over the duration of the contract, contributing to its non-core revenue streams.

RailTel Share Price Performance

On June 2, 2025, RailTel share price opened at ₹396.00, up from its previous close of ₹398.55. At 11:22 AM, the share price of RailTel was trading at ₹397.25, down by 0.33% on the NSE.

About RailTel Corporation of India Ltd

RailTel, a "Navratna" PSU under the Government of India, was established in 2000 with the goal of building a nationwide broadband, VPN, telecom, and multimedia network. Its primary objective was to modernise train control operations and enhance the safety systems of Indian Railways. Today, RailTel's extensive network spans approximately 6,000 stations, connecting key commercial hubs across the country.

Also Read: RailTel vs RVNL vs IRCON: Comparing Q4 FY25 Results and Share Performance!

Conclusion

This partnership marks a major milestone in RailTel’s diversification strategy into data infrastructure. With TECL’s expertise and RailTel’s asset base, the Noida Data Centre is poised to become a significant addition to India’s growing digital ecosystem.

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