RITES acquires 24% stake in Indian Railway Stations Development Corporation

The company has resumed operations at most of its offices and project sites after easing of lockdown.

May 22, 2020 11:05 IST India Infoline News Service

RITES
Infrastructure Consultancy and Engineering company, RITES Ltd. has signed an agreement for acquiring 24% stake in Indian Railway Stations Development Corporation (IRSDC). The company has resumed its operations at most of its offices and project sites after Covid-19 induced lockdown restrictions were eased.

“The company has signed a Shareholders Agreement for acquiring 24% stake in Indian Railway Stations Development Corporation (IRSDC) for Rs48 cr with Rail Land Development Authority and IRCON International being the other equity partners,” a press release said.

Besides its corporate office in Gurugram, project offices at Ahmedabad, Bhubaneswar, Secunderabad and inspection offices at Bhilai, Delhi and Chennai have also started operations.

Key project activities have been resumed at various sites like rail line doubling project at Gooty-Dharmavaram, railway electrification work in Rajasthan. Also resumed are Project Monitoring Services at several rail connectivity works of power plants and coal mines, workshops modernization at Bikaner in Rajasthan, Kurdawadi in Maharashtra, Lumding in Assam, Sarla in Odisha, Quality Assurance work at various locations etc.

With these operations, RITES is estimated to have achieved more than half of its capacity and will scale up its activities with easing of more restrictions.

Apart from concluding negotiations for a major export deal with CFM Mozambique enhanced to Rs700 cr on account of increase in quantity, RITES has been able to successfully deliver the 188 RKM Vijaypur-Pachore Road-Maksi section railway electrification project in Madhya Pradesh during this lockdown period.. Besides working from home on various reports, tenders and designing based projects, it continued its operations at most of the locomotive leasing sites and inspection office at Bhilai.

Rites Ltd is ended trading at Rs224.15, down by Rs3.65 or 1.6% from its previous closing of Rs227.80 on the BSE.

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