The ministry of corporate affairs is likely to approve the merger of Railtel Corporation of India with its subsidiary Railtel Enterprises in July, after a final hearing, as shareholder and creditor approval has already been received, Moneycontrol has exclusively learnt from a government official.
“Railtel Enterprises’ merger with Railtel Corporation of India Ltd is with MCA for approval. The first meeting with MCA on this was held in March. They have got shareholder and creditor approval. Now, MCA will call for a final hearing in July,” the official told Moneycontrol.
Also Read: Railtel Consolidated March 2023 Net Sales at Rs 703.63 crore, up 51.15% Y-o-Y
RailTel Enterprises Limited (REL) is a wholly owned subsidiary of RailTel Corporation of India Limited, which is a Mini Ratna (Category-I). REL was incorporated in August 2014 in view of expanding project execution work for telecom and signalling.
Railtel Corp, a Central Public Sector Enterprise, is an Information and Communications Technology provider and one of the largest neutral telecom infrastructure providers in the country with a pan-India optic fibre network. The CPSE was incorporated on September 26, 2000 with the aim of modernising the existing telecom system for train control, operation and safety, and to generate additional revenues by creating a nationwide broadband and multimedia network, by laying optical fibre cables alongside railway tracks.
Currently, RailTel’s optic fibre network covers over 61,000 route kilometres and over 6,108 railway stations across India.
In March, RailTel Corporation of India received a work order from the Centre for Development of Advanced Computing (C-DAC) for supply, installation, integration, testing and commissioning of IT infrastructure for greenfield data centres in New Delhi and Bengaluru, along with training and support amounting to Rs 287.57 crore. C-DAC is undertaking this turnkey project to build a suite of Big Data enterprise applications, each of which is to be built over secure, flexible, support for the latest networking protocols, with continuous visibility and monitoring, as well as centralised orchestration and management.
The financials
Railtel Corp had said that the C-DAC order is aligned with its core competence and business portfolio and that it will continue to eye more such projects to enhance its revenue stream.
The CPSE’s consolidated March 2023 net sales stood at Rs 703.63 crore, up 51.15 percent year on year.
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