RailTel, which falls under the category of a Mini Ratna Public Sector Undertaking (PSU) functioning under the Ministry of Railways, has been assigned a significant task by Pimpri Chinchwad Smart City (PCSCL). The task involves providing comprehensive services for the monetisation of PCSCL's City Network Infrastructure. This will follow a "revenue sharing model" that spans a duration of 10 years.
It is noteworthy that this specific opportunity is a significant achievement for RailTel. This is because it signifies the company's initial involvement in the monetisation of telecommunications infrastructure within the context of a Smart City. The city in focus, Pimpri Chinchwad, is positioned in the Pune region. It holds the distinction of being the eighteenth most populous city in India and the fifth-largest in the state of Maharashtra. RailTel's main role in the monetisation process will be to generate revenue through leasing agreements.
As stated in an official announcement by RailTel, the expected annual revenue is estimated to reach Rs 0.7 billion. This would result in a total revenue of Rs 7 billion over the span of ten years. Out of this amount, RailTel has committed to paying Rs 324 million as a fixed revenue payment to PCSCL each year.
Additionally, RailTel has consented to provide extra revenue, amounting to a minimum of 21 percent, based on the entire incremental revenue generated during the ten-year period. The comprehensive project also encompasses the establishment of a Network Operation Centre (NOC). This will involve managing and maintaining the existing digital infrastructure that connects various entities such as citizens, government bodies, enterprises, and communities. The project also includes the potential expansion of PCSCL's network infrastructure. This expansion will come with the associated operational and maintenance responsibilities over the same ten-year period, as laid out in the statement.
RailTel will also supply PCSCL with the necessary fiber cable cores to establish connectivity across different parts of the smart city. This will cover the entirety of the Pimpri Chinchwad Municipal Corporation (PCMC) area. The aim of this initiative is to create a digitally interconnected ecosystem. This ecosystem is intended to improve citizen experiences and facilitate efficient urban services provided by PCMC, PCSCL, and the local police department. The acquisition of this order was secured through a thorough and transparent competitive bidding process, utilising the highest Cost Method (H1).
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