Railtel corporation of india Limited has announced securing a major order worth Rs 342.91 crore from the South Central Railway division. The Navratna PSU received the Letter of Acceptance from Dy.Cste/Projects/Bza on March 13, 2026, marking a significant addition to its order book in the railway infrastructure segment.

Project Details and Scope

The contract encompasses comprehensive signaling and telecom arrangements for two critical railway infrastructure projects. The scope includes yard remodeling of Guntur Junction and implementation of Automatic Block Signaling System between GNT-NLPD Section in Guntur Division of South Central Railway.

Technical Infrastructure Components

The project involves sophisticated railway signaling and telecommunications infrastructure development. The yard remodeling of Guntur Junction will enhance operational efficiency and safety standards at this crucial railway junction. Additionally, the Automatic Block Signaling System implementation between GNT-NLPD Section will modernize train movement control and safety protocols.

Contract Specifications

This domestic contract represents RailTel's continued expansion in railway infrastructure modernization projects. The order falls under the company's core competency areas of signaling and telecommunications, leveraging its expertise as a government enterprise under the Ministry of Railways.

Strategic Significance

The order reinforces RailTel's position as a key player in India's railway infrastructure development. The project will contribute to enhancing railway safety and operational efficiency in the South Central Railway network, supporting the broader modernization initiatives of Indian Railways. The substantial order value of Rs 342.91 crore demonstrates the scale and importance of this infrastructure upgrade project.

RailTel Corporation of India Limited has announced its second interim dividend for the financial year 2025-26, marking another milestone in the company's shareholder value creation. The Board of Directors approved this dividend declaration in their meeting held on March 9, 2026, demonstrating the company's commitment to consistent returns to its shareholders.

Dividend Declaration Details

The company has declared the second interim dividend at an attractive rate, providing direct benefits to its equity shareholders.

Shareholders holding equity shares as on the record date of March 13, 2026, will be eligible to receive this dividend payment.

Electronic Payment Mode Implementation

In compliance with SEBI Fifth Amendment Regulations effective from November 19, 2025, RailTel will use only electronic modes of payment approved by the Reserve Bank of India for dividend distribution. The company has discontinued the issuance of dividend warrants and requests shareholders to update their bank details with respective depositories to ensure seamless electronic credit of dividend amounts.

Tax Deduction Guidelines

With dividend income becoming taxable in shareholders' hands from April 1, 2020, the company has outlined comprehensive TDS provisions under the Income Tax Act, 1961.

For Resident Shareholders

The company provides various exemption categories for resident shareholders:

• Form 15G/15H submissions for individuals with no tax liability
• Certificate for lower/nil deduction under Section 197
• Insurance companies registered with IRDA
• Mutual funds registered with SEBI
• Government entities and corporations under Section 196
• Alternative Investment Funds (Category I and II)
• Provident funds, superannuation funds, and gratuity funds
• National Pension Trust with appropriate documentation

For Non-Resident Shareholders

Non-resident shareholders, including Foreign Institutional Investors and Foreign Portfolio Investors, face TDS at 20% plus applicable surcharge and cess under Sections 195 or 196D. However, they can avail beneficial rates under Double Tax Avoidance Agreements by submitting:

• Self-attested PAN copy or prescribed details under Rule 37BC
• Valid Tax Residency Certificate for FY 2025-26
• Form 10F filed online for treaty benefits
• Additional documents for specific exemptions under Section 10(23FE)

Document Submission Requirements

Shareholders seeking TDS exemption, lower deduction rates, or credit transfer to beneficial owners must submit required documents to beetalrta@gmail.com or cs@railtelindia.com by 11:59 p.m. IST on or before March 16, 2026. The company emphasizes that communications received after this deadline will not be considered for the interim dividend payment.

Key submission guidelines include:

• Password-protected documents require password sharing in the same email
• Single email should contain documents for one shareholder only
• Multiple shareholders require separate emails with clear identification
• Incomplete or unsatisfactory documentation may result in higher TDS rates

Important Considerations

RailTel has clarified that shareholders remain responsible for any income tax demands arising from misrepresentation or omission of information. The company advises shareholders to consult their tax consultants for specific implications, as tax consequences depend on individual circumstances. TDS credits will be visible in Form 26AS, downloadable from the income tax e-filing portal.

This dividend declaration reinforces RailTel's position as a reliable dividend-paying entity, continuing its track record of rewarding shareholders while maintaining compliance with evolving regulatory requirements.