RailTel secures Rs 19 cr MPLS‑VPN order from AAI till 2030
RailTel Corporation has secured a new contract valued at ₹19 crore from the Airports Authority of India (AAI) to provide Multiprotocol Label Switching-Virtual Private Network (MPLS-VPN) services. The multi-year project, scheduled for execution until 31 August 2030, is a crucial step towards modernising the country’s aviation communication network. This deal not only solidifies RailTel’s position as a key player in the telecom sector but also highlights the increasing demand for secure, high-speed data connectivity to support the complex operations of modern airports. This move is indicative of a broader trend where robust digital infrastructure is seen as a prerequisite for creating sustainable and efficient urban ecosystems.
The contract involves the deployment of MPLS-VPN services across various AAI airports and offices, which will be instrumental in creating a unified and secure communication backbone. MPLS-VPN technology is a sophisticated networking solution that allows for the creation of private communication channels over a shared network. It provides enhanced security, reliability, and quality of service (QoS) by prioritising different types of data traffic, such as voice, video, and mission-critical operational data. For a large and distributed organisation like the AAI, this ensures that essential services like air traffic control, baggage handling, and administrative functions operate without interruption and with the highest level of security. This investment in resilient and secure digital infrastructure is a fundamental pillar of building smart and sustainable cities, where interconnected systems work seamlessly to improve efficiency and safety.
As a “Navratna” Public Sector Undertaking (PSU) under the Ministry of Railways, RailTel’s success in bagging this project is a testament to its expanding role beyond traditional railway-centric operations. The company has been aggressively leveraging its extensive Pan-India optical fiber network to cater to a diverse range of clients, from government entities to private corporations. This strategic diversification is paying off, as evidenced by its robust financial performance. In the first quarter of fiscal year 2026, the company reported a standalone net profit of ₹66.10 crore, marking a significant increase of 35.81% year-on-year. Similarly, its revenue from operations surged by 33.27% to ₹743.81 crore, reflecting a strong growth trajectory. The AAI contract, while not the largest in its portfolio, adds to a series of recent wins that collectively underscore the company’s vital contribution to the nation’s digital transformation.
This project also carries a strong environmental and social component. By providing efficient and reliable digital connectivity, it reduces the need for physical travel and on-site visits for management and maintenance, thereby lowering carbon emissions. The enhanced operational efficiency at airports can also lead to a more streamlined and less resource-intensive service delivery model. From a social perspective, a robust digital network ensures that all airport staff, regardless of their gender or role, have equitable access to information and tools, promoting a more gender-neutral and inclusive work environment. The deployment of this technology lays the foundation for future-ready airports that are not only financially viable but also environmentally conscious and socially equitable. The contract’s long execution timeline until 2030 allows for a phased and well-planned implementation, ensuring that the integration of this new technology is smooth and effective, ultimately contributing to the creation of a zero-net-carbon, eco-friendly, and sustainable urban future.
