Cancellation of Work Order
RAILTEL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
RailTel Corporation of India Ltd has informed exchanges that a Letter of Acceptance (LOA) awarded by South East Central Railway has been cancelled. The original order, received in March 2026, was for supply, transportation, trenching, laying, and installation of Optical Fibre Cable (OFC). The estimated order value was Rs. 26,72,60,140 (approximately Rs. 26.73 crore). The company stated it decided not to execute the work due to the prevailing war situation causing a steep increase in prices of OFC, HDPE pipes, and other materials, making the project cost unviable. Consequently, the customer (South East Central Railway) terminated the contract.
The cancellation removes a Rs. 26.73 crore order from RailTel's pipeline. While the financial impact is relatively limited, the cancellation due to geopolitical-driven material cost escalation highlights execution risk on railway infrastructure projects. Shareholders should monitor for any further contract reallocations or cost-related cancellations.