Railtel Corporation of India has announced the cancellation of a significant contract with South East Central Railway valued at ₹26,72,60,140. The decision was influenced by the ongoing war situation, which has led to a sharp increase in the prices of optical fibre cables (OFC), HDPE pipes, and other necessary materials, rendering the project financially unfeasible.
The contract, initially secured in March 2026, involved the supply, transportation, trenching, laying, backfilling, horizontal directional drilling, HDPE pipe insertion, blowing, jointing, and termination of OFC. However, due to the unexpected escalation in material costs, Railtel has opted not to proceed with the execution of the project.
As a result, South East Central Railway has terminated the contract awarded to Railtel. This development underscores the impact of global geopolitical tensions on domestic infrastructure projects, particularly those reliant on materials subject to volatile pricing.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).