Rites Ltd Management Discussions.

This analysis report briefly describes about the Company, Industry, present business environment and ability to avail opportunities, leverage strengths, handling of challenges/weaknesses, financial performance, internal controls and other related issues.

I. ABOUT THE COMPANY AND THE INDUSTRY

RITES Limited, a Miniratna (Category-I), Schedule ‘A Central Public Sector Enterprise was established in 1974, under the aegis of Ministry of Railways, Government of India. RITES is a leading multi-disciplinary engineering & consultancy organisation, providing customized, viable, competitive, diversified and comprehensive, concept to commissioning services and integrated solutions in the transport and infrastructure sector in India and abroad.

The services provided by the Company cover various sectors such as the railways, highways, airports, ports, ropeways, urban transport, inland waterways and renewable energy etc. With a seamless track record of over 46 years, RITES has so far served the clients in more than 55 countries across Asia, Africa, Latin America, South America and Middle East region.

The major services provided by the Company include Survey and Feasibility Studies, Detailed Design & Engineering, Project Management Consultancy, third party inspection, quality assurance, Construction Supervision, operation, maintenance and rehabilitation of locomotives & rolling stock, leasing and export of locomotives & rolling stock, Energy management etc. Company also has presence in the field of transaction advisory for infrastructure projects being taken up on PPP (Public Private Partnership) mode.

Company is also carrying out projects relating to construction of railway infrastructure, electrification works and modernization of railway workshops on turnkey basis. With the changing environmental and climatic conditions, a paradigm shift is taking place globally from use of conventional sources of energy to renewable sources of energy. In line with the trend, the Company has also diversified through its subsidiary REMCL, into the field of renewable energy such as solar and wind energy for Indian Railways. REMCL is also managing the procurement of traction power for Indian Railway under "Open Access Policy". Company also undertakes wagon rehabilitation and manufacturing works through its Joint Venture entity SAIL-RITES Bengal Wagon Industry Private Limited.

BUSINESS ENVIRONMENT & OUTLOOK Domestic

India aims to grow rapidly and become a $5 Trillion economy by 2025. As such, it is imperative that the investment in infrastructure sector would increase manifold in near term. Recognizing the importance of infrastructure sector and its contribution in economy, Government of India has decided to invest an amount of Rs.111 Lakh Crore on National Infrastructure Pipeline projects over six years through FY 2025, allocating major part of the expenditure for energy, roads, urban development and railways, and envisaging a key role for private investors. It is estimated that country would need to spend $4.5 trillion on infrastructure by 2030 to continue on an escalated trajectory of growth until 2030.

In the Budget for FY20-21, an amount of Rs. 1.7 lakh crore has been allocated towards transport infrastructure, highlighting the governments continued thrust on infrastructural development and reiterating the eminence of the sector in the countrys progress. Allocation for railways has increased 3% to Rs. 1.6 lakh crore in fiscal 2021. The budget emphasized on private sector involvement in redevelopment of railway stations and Train operations on PPP basis. It is proposed to electrify 27000 Kms of track and to develop large solar capacity alongside rail tracks. The budget also announced an allocation of Rs. 1.4 Lakh crore in fiscal 2021 towards the Roads and Highways sector. The focus is on accelerated development of Highways and to monetise atleast 12 bundles of Highways of 6000 Kms. The Government also has plans to develop 100 more airports, which is in line with the NIPs vision of India entering the top-2 aviation markets by 2025. It is expected that with such extensive capex infrastructure outlay, RITES will be one of the key beneficiaries as consultant.

Overseas

During the year, RITES has been able to secure projects in South Asia and Africa in railways, highways, metros, ports, airports etc. despite stiff competition. The company is pursuing more business opportunities including exports of locomotives and coaches from India.

Several countries in Asia, Africa and Latin America have seen rapid GDP growth in the last five years. There is a renewed focus on development of transport infrastructure, with mobility through railways and metros emerging as the preferred mode. The civil aviation and port investments have also seen manifold increase in the last decade. RITES with its experience of working in several countries and in multiple infrastructure sectors is continuously spotting such business opportunities. The huge funding needed for infrastructure creation faces resource limitation in several developing countries. The combination of financial assistance through government budgets by countries and financial assistance by multi-lateral and bilateral agencies also accelerates the infrastructure creation. Line of Credit extended by India to several countries for their infrastructure / rolling stock requirement has also created business opportunities for RITES. The business approach of RITES is to be a technical partner with the countries where we regularly work and facilitate creation of bankable projects. Training and human resource development activities by RITES also have been useful in creation of long-term business association.

The increased thrust on expansion of rail and road network, augmentation of the solar power sector, project preparation facility, and building up public-private partnerships in the transport infrastructure sector, provides RITES with an eminent opportunity to play a significant role in the development of the Indian, South Asian and African Infrastructure with its wide consultancy expertise in transport infrastructure space starting from feasibility studies, integrated design services, institutional management and technical support services.

COVID-19 IMPACT ON BUSINESS

The last quarter of the FY 19-20 saw some disruption due to Covid-19 and consequent lockdown in

India and several other countries where RITES is executing projects. Given the challenges that the businesses and people are facing currently, several economies may have a lower/negative growth during FY 20-21. Most multilateral agencies and credit rating agencies have also revised their growth projections for India for FY20-21, keeping in view the negative impact of coronavirus-induced travel restrictions, supply chain disruptions, subdued consumption and investment levels. However, the strong fundamentals and resilience of the Indian Economy will help India to recover from the economy negatively impacted due to the pandemic of Covid-19 and move on the increasing trajectory of the GDP growth in the coming years. Government is taking various measures including financial stimulus packages to facilitate early revival and strengthening the economy. The business/ sectoral diversity of RITES, internal strength of teams and geographical distribution of projects will help RITES to return to normalcy faster. The company does not envisage any serious business disruption or cash flow difficulties due to this.

II. STRENGTHS AND WEAKNESSES

RITES is a well-established organization with a proven track record and high international visibility and reputation earned through successful delivery of several infrastructure projects in over 55 countries so far. The Company has a large pool of highly qualified and experienced technical personnel, with the ability to take up projects requiring multi-disciplinary expertise in railways, highway, urban transport, ports & airports, ropeways, institutional buildings, energy management and other related sectors of infrastructure. Additionally, RITES has access to the expertise, manpower resources and infrastructure facilities of Indian Railways. This enables the Company to capture additional business opportunities wherever possible.

On the technical front, RITES ability to utilize relevant technology for mega projects like Dedicated Freight Corridors, High Speed Rail, Long Span Bridges and Tunnels, MRTS/LRTS/Metrolite/high capacity bus system and other state-of-the-art technologies in critical areas of new infrastructure/upgrade of existing infrastructure on its own or with other expert agencies in India and abroad along with an In-house availability of sophisticated software, equipment and facilities for undertaking complex design work of bridges, tunnels, highways, rolling stock etc., provides an edge to the Company over industry players. RITES has a unique quality assurance / inspection group with in-house laboratories. The Company provides a cohesive environment to learn and develop. The technical personnel work in pursuit of providing innovative solutions to the clients as per the client specifications and requirements. RITES has established itself as a brand known as "The Infrastructure People" because of outperforming track record of successfully handling a large number of infrastructure projects in India and abroad.

RITES ability to collaborate and work jointly through alliances, joint ventures, subsidiaries and consortium arrangements enables it to enhance the range of its services and allows it to focus its attention on large-scale projects.

The Company is listed with stock exchanges and is figuring in top 500 listed companies in India on the basis of market capitalisation and revenue.

RITES is highly dependent on skilled manpower/ professionals and with the increased government initiative to attain accelerated economic growth, more and more organizations are making into roads in the market which may result into loss of experienced professionals. Further, retaining of experts/talent required for high technology areas is a challenge.

III. OPPORTUNITIES AND THREATS

The Government of India has announced the National Infrastructure Pipeline (NIP) worth over Rs.111 lakh crore to meet the target of $5 trillion economy by 2025. The salient features of NIP for transportation and logistics include; fully integrated rail network with inter-modal connectivity, world-class railway stations and high standards of safety, metro connectivity in at least 25 cities, road connectivity to remotest areas, trunk connectivity through expressways, economic corridors, strategic areas & tourist destinations, air connectivity to all tier II and most tier III cities, development of ports for considerable reduction in logistic costs and quick turnaround and for affordable and clean energy; reduce pollution through green and clean renewable energy and environment-friendly fuel for transportation. National Infrastructure Pipeline (NIP) announced by the Government, offers scope to strengthen RITES position in existing areas and to explore and develop new areas of business. An opportunity can be contemplated in moving up the value chain through providing total transport solutions to steel/power plants & mining companies and ports for movement of coal/iron/ ores/containers/cargo through rail, road, pipeline, conveyor system as may be required. An opportunity is also seen in taking up of EPC projects on turnkey basis in the core business areas.

Furthermore, there are significant investments expected to be made in SAARC countries, Middle East, South-East Asia and Africa in the coming years, offering considerable scope for consultancy services. Indian Railways has set up an ambitious target of 3000 MW of solar capacity and 200 MW of wind capacity by 2020-21 and also planning for hybrid (wind & solar) power to tap 250 MW for IR. REMCL is implementing these projects.

It is expected that future work from IR and other government agencies may be awarded based on competition among PSUs and/or tendering process in which private players are likely to participate. Aggressive bidding by private players may pose a threat. Further, foreign players are also making their presence felt in the Industry, thereby making the market more competitive. Due to this increased competition and aggressive bidding by such competitors, operating margins may have an adverse impact.

IV. RISKS AND CONCERNS

In view of increased globalisation and opening up of cross-border business, there is a greater risk of competition from foreign companies in consultancy projects. RITES also faces certain competitive pressures from the existing competitors and new entrants in both public and private sectors within India. Increased competition and aggressive bidding by such competitors can make its ability to procure business in future uncertain which may adversely affect its business, financial condition and results of operations. Sometimes, Clients prefer to engage a single agency who will do the design; engineering, construction and commissioning of projects, especially for projects with proven/standard design such as ROBs/RUBs, railway sidings, city/municipal roads, etc. In view of this concern, RITES has also taken up a few turnkey projects assigned by Indian Railways. However, turnkey projects fetch lower margins than consultancy. Company enters into joint ventures and consortium arrangements for completion of its projects which may expose it to additional liabilities on account of its partners failure or under performance and any premature termination of which, may adversely affect its business, reputation, financial condition and results of operations. The cyclical nature of the business of export of rolling stock is because of intensive capital outlay and also part its dependence on lines of credit offered by GOI to various countries in Asia and Africa. Export of rolling stock due to such issues sees an uneven performance. RITES global operations are also exposed to geopolitical, international legal, tax and economic risks.

RITES also carries risks arising from currency exchange rate fluctuations, which could adversely affect its business, financial condition, results of operations and future prospects. These risks are mitigated by management through appropriate measures. Majority of RITES client base comprises Government clients, PSUs, Foreign Governments and a few private parties. Further, there is a concern that, continued funding of infrastructure capital expenditure (Capex) can be a challenge in the near future in view of COVID-19 impact on Infrastructure, Transport & Logistics Sector. Additionally, constraint in funding may be further aggravated by increased social and welfare spending by government agencies to support the loss of income caused by the lockdowns and meet health costs.

V. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

RITES has adequate internal control and audit systems for enhancement of efficiency in operations and to ensure compliance with applicable laws, rules and regulations. Company has structured policies and guidelines for optimal delegation of authority for facilitation of business. RITES internal audit is conducted by experienced professionals and external audit firms. The internal control and audit systems are also reviewed periodically. Corrective and preventive measures, whenever necessary are taken up from time to time for continuous improvement. The internal control system has been further strengthened through the followings:

INTERNAL FINANCIAL CONTROLS

The Internal Financial Control of the Company is analyzed and audited for its adequacy and effectiveness. A report under clause (i) of Subsection 3 of Section 143 of the Companies Act, 2013 is issued by Auditor and same is annexed to the Independent Auditors Report indicating that the Company has in vogue, in all material respects, an adequate internal financial control system over financial reporting and such internal financial controls over financial reporting operate effectively, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control.

ISO CERTIFICATION

Entire RITES has been certified to Quality Management System (QMS) as per ISO 9000 series of standards since 2001. The certification has subsequently been upgraded to the revised versions of ISO 9001 as per ISO 9001:2008 and ISO 9001:2015. The ISO defines the requirement of internal controls through manuals and procedures which are to be formed both at the Corporate level and at the Strategic Business Unit (SBU) level. The ISO based QMS involves regular internal audits so as to ensure the compliances with stipulated rules / regulations on a regular basis and therefore, forms a part of the internal control systems.

RISK MANAGEMENT SYSTEM

A Risk Management system is in vogue in the Company which takes care of identification, prioritization and mitigation of risks. The Risk management systems include the Financial Risk Management systems since the Companys activities are exposed to a variety of financial risks such as market risk, credit risk and liquidity risk. The Financial Risk Management systems focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance through the various risk mitigation strategies in place.

Under ISO 9001:2015 requirements, an additional requirement related to the risk management is introduced which comprises of 10 components that have been laid down which need to be complied with for mitigating any possible risk.

TREASURY RISK AND LIQUIDITY MANAGEMENT

Execution of Foreign projects also carries currency variation risk. The Company regularly monitors exchange fluctuations to mitigate this risk. The Company has a sound currency risk management policy in place. Policy covers various aspects of currency risk management, benchmarking, hedging and risk appetite, permissible instruments, structure of the risk management committee and treasury group, reporting procedures etc.

For control and directions of operations pertaining to currency risk management, the Company has a committee and an external consultant. Actions taken are informed to the Management periodically. The Company has continued to optimize its surplus funds by adhering to an efficient decision-making process of investing its surplus funds in deposits with banks, mutual funds and corporate bonds within the framework and guidelines of Government bodies, Department of Public Enterprises (DPE), Companies Act 2013 and those approved by BOD. There is an investment committee of the Board of Directors, which approves investments and reports to the Board periodically.

The Company has been affirmed ‘IVR A1+, the highest short term rating for its non-fund based working capital limits by Infomerics Valuation and Rating Pvt. Ltd. This rating helps the Company to get non-fund based facilities at more attractive terms.

VI. FINANCIAL PERFORMANCE

RITES has achieved all time high turnover during the Year. The Company recorded total income of Rs.2665 crore compared to Rs.2164 crore in the previous

Year. Profit after tax for the year is Rs. 596 crore as against Rs.445 crore in the previous year. Continuous satisfactory performance to win confidence of clients and efforts on business development has contributed in closing the year with a record order book of Rs.6223 crore, which is also the highest so far. During the year, the Company has earned an operating turnover of Rs.2401 crore as against Rs.1969 crore of previous year, thereby having an addition of Rs.432 crore. The net-worth has also grown from Rs.2384 crore to Rs.2577 crore. During the year, the Company has spent Rs.11.21 crore as against Rs.10.23 crore in the previous year towards Corporate Social Responsibilities.

KEY FINANCIAL RATIOS

Particulars 2019-20 2018-19
Debtor Turnover (No. of days) 113 97
Current Ratio 1.72 1.67
Operating Profit Margin (%) 23.25 24.46
Net Profit Margin (%) (PAT / Total Revenue) 22.38 20.55
Return on Net Worth (PAT/ Avg. Net worth)@ 23.98 19.39

@ Reason for increase in return on net worth during current year in comparison to previous year is mainly because of increase in operating turnover, coupled with increase in other income.

VII. SEGMENT-WISE PERFORMANCE

During the year, consultancy services, including quality assurance services, contributed 44.41% of the total operating income, turnkey construction projects contributed 28.03%, export sales contributed 22.53% and balance of 5.03% was contributed by leasing income. A segment-wise comparison is given below:(Rs. in crore)

Particulars

2019-20

2018-19
Operating Income % Operating Income %
Consultancy
Services
- Domestic 999 41.63 1019 51.74
- Abroad 67 2.78 73 3.70
Turnkey 673 28.03 567 28.80
Construction
Projects
Export 541 22.53 207 10.50

(Rs. in crore)

Particulars 2019-20 2018-19
Operating Income % Operating Income %
Leasing (Domestic & Abroad) 121 5.03 103 5.26
Total 2401 100 1969 100

VIII. OPERATIONAL PERFORMANCE BUSINESS OUTLOOK

RITES continued to provide concept to commissioning consultancy, design, engineering and turnkeysolutionsincludingknowledgemanagement in the field of Transport, Transportation Infrastructure and related technologies of highest professional standards to its varied clients in India and abroad. RITES strives to deliver outstanding client service consistently and create a distinctive brand image. RITES is also able to access additional business from existing clients and address the requirements of a larger base of potential new clients.

RITES has strengthened its presence in consulting domain in various transport infrastructure sectors while simultaneously diversifying in areas with growth potential as per changing macroeconomic trends and expand operations in the sectors with some presence to have better hold into a wider range of services viz. turnkey works of construction & upgrading / modernization of railway workshops and wet leasing of locomotives in domestic markets. With the Government of India unveiling the National Infrastructure Pipeline (NIP), RITES with wide consultancy expertise in transport infrastructure space, is fully geared up to tap such opportunities including feasibility studies, integrated design services, project management and technical support services. RITES has continued to attract sizeable business both from the Indian Railways (IR) and the Non-IR railway clients. It undertook investigations and feasibility studies, integrated design services, institutional management, technical support for new railway projects and rehabilitation, modernization and capacity enhancement of existing railways systems, project management consultancy for railway electrification, designing, modification, procurement and export of locomotives and rolling stock, leasing of locomotives and works related to operation & maintenance of diesel locomotives, wagons, tracks and modernisation of railway stations etc.

RITES renders Quality Assurance and vendor assessment services in India and abroad to large number of clients both in Government and Private sector and also provide laboratory testing services through its labs. RITES is a strong player in the Mass Rapid Transit Systems(MRTS)andfocusesonfurtherconsolidating its position by capturing sizeable business of the technical consulting market for preparation of Feasibility Reports, DPRs, Project Management and Construction Supervision in area of Metro Rail

System, Light Rail Transit System, Suburban Rail and Metro Lite.

In highway and road infrastructure sectors, RITES looks for opportunities and provide consultancy, in areas of design and PMC apart from new areas like road safety audits, bridge condition surveys, bridge maintenance management systems, rehabilitation of roads and bridges, project coordinating consultancy services.

Airport sector projects provide scope for Consultancy assignments in the areas of; Feasibility & Design Studies, Project Management Consultancy in development of Feeder airports and airports in the NE Region, Green field airports, Heliports; Assistance to DGCA in area of Airport Technical Audits needed for airport licensing requirement & renewal thereof, Non – Destructive Testing of Pavements, Feasibility & Design Studies, Project Management Consultancy in development of Integrated Check Posts along the borders for MEA/ LPAI, Project Management in modernization of defence airfields.

International Business for railway, highway, metro, port and airport projects for preparation of DPR & Construction supervision. And also supply of railway rolling stock and rehabilitation of existing railway systems under multilateral, bilateral or GoI funding. Ports and water resources projects provide scope for consultancy services for Ports and Harbours,

Water Resources Engineering and Inland Water Transport (IWT), Port Modernization, Connectivity Enhancement, Port-linked Industrialization, Coastal Community Development.

For Building Projects, RITES is providing Project Management Consultancy and Third Party Quality Assurance, Inspection and Audit Services to various clients and has been successfully executing various prestigious Institutional, Commercial and Residential Buildings and Infrastructure Projects for Central/ State Govt. Organization, PSUs, Universities, IIMs, AIIMs, other Institutions of National Importance, Autonomous Bodies, Private Sector etc. at various locations.

Ramping up Investments, including through private participation, is the priority Area for Govt. of India for development of various infrastructure such as railways, urban transport including metros, highways, airports, ports, urban infrastructure including smart cities, integrated check posts, power sector etc. RITES looks for new areas of business/ expansion in existing services such as; Maintenance of rolling stock for private train operators, Metro services and RITES own locomotives by setting up maintenance workshop, Mechanical handling system (conveyor system) of coal and iron ore at mines and loading and unloading of cargos at ports, Explore possibility of providing technical services to metro rail system already in operation and Metro Lite, including management of maintenance of assets, system studies and upgrades etc, deeper intervention in quality assurance of products by way of undertaking raw material in process, stage inspection, in addition to pre-dispatch inspection being undertaken presently, Expanding the reach of inspection services to sectors like defence equipment, including supply through GeM, Projects for dealing with public health engineering projects i.e. water transmission system, irrigation and interlinking of rivers etc., Solar/Wind Renewable Energy: Leveraging REMCLs position and expertise in order to generate new streams of revenue for RITES. For Export and leasing of rolling stock business segment, RITES focus business opportunities to develop and offer new locomotive and coach designs for meter gauge (MG) and cape gauge (CG) that can be marketed and sold to clients in Asia and Africa. Initiatives are taken to provide export service packages covering; conversion to standard gauge, upgrading of engines and fuel system to meet emission norms and long-term spare supply and warranty support besides, development of new design of bogie and coach for MG/CG, both in AC and non-AC configuration.

Strategy Going Forward

RITES intends to leverage its experience and continue to build on its core competencies in transport infrastructure sector across various sub-sectors by way of alliances, joint ventures, subsidiaries and consortium arrangements with focus on sectors such as metro, Dedicated Freight Corridors, high-speed trains, airports, etc. Company plans to expand its international operations by expanding its business of exporting of railway locomotives, coaches, wagons and other equipment and strengthen its EPC/Turnkey business - Company has been awarded projects on nomination basis from the MoR for construction of railway lines and electrification of existing/ new railway lines and upgradation of railway workshops on a fixed fee basis. Considering the extent of new investments in electrification and railway infrastructure it intends to strengthen its organization for taking more such works. Expand its operations in the power procurement and renewable energy sector through its subsidiary

- Railway Energy Management Company Limited (REMCL).

OVERSEAS BUSINESS

RITES has extensive experience in working with multilateral-fundingagenciesandotherinternational organizations. RITES has high international visibility and reputation earned through work experience in over 55 countries so far. Export and leasing of rolling stock business segment continued to be supported by Indian Railways Production Units with new technology/ specifications as required by clients at a competitive pricing.

RITES secured contract to supply 6 sets of DEMUs and 10 Broad Gauge AC-AC Diesel Electric Locomotives in FY 2017-18 from Sri Lanka. Two sets of DEMUs and 2 locomotives were supplied in FY 2018-19. Balance four sets of DEMUs and eight locomotives have been supplied during the current year. Additional order for supply of 2 sets of DEMUs has also been secured, delivery for the same will be made during FY 2020-21. During the year procurement activities were also undertaken for supply of 160 Broad Gauge passenger coaches against order secured from Sri Lanka and Locomotive spares to Myanmar Railways. In highway sector, RITES secured a prestigious Management Consultancy Services (PMC) project for Improvement of Ashuganj River Port-Sarail-Dharkhar-Akhaural and port Road as 4-Lane National Highway Project from government of the Peoples Republic of Bangladesh.

RITES continued to provide consultancy services for implementing light rail project in Mauritius between Port Louis to Curepipe.

During the year, RITES provided construction Supervision and Project Management Consultancy (PMC) services for development of National Coast Guard Headquarters in Mauritius against a project secured from Ministry of Defence and Rodrigues, Government of Mauritius. RITES continued to provide consultancy for Detailed Design for construction of Single Standard Gauge Railway line from Tema to Akosombo on Engineering Procurement and Construction (EPC) basis in Ghana (100km); Project Management Consultancy for East Bank – East Coast road linkage project in Guyana (South America) and consultancy services for construction supervision of Tshesebe to Masunga Road in Botswana.

DOMESTIC BUSINESS

RITES has always remained on the fore-front in development of Transport, Transportation Infrastructure and related technologies and turnkey solutions for various clients from Ministries/ Departments of Central Government, State Government and Private Corporate Houses etc. During the year, RITES provided its consultancy services for various railway projects such as; Conventional Railways, Dedicated Freight Corridors, High-Speed Passenger Corridors, Semi High-Speed Corridors, Integrated Multi Modal Logistic Hub, Rail connectivity for Industry/ports for bulk movement of freight, Railway Safety, capacity augmentation projects, Railway electrification, Signaling and telecommunication, Metropolitan Transport Projects, Production Units & Workshop Modernization, Traffic studies, Port Connectivity Projects, Energy and sustainability, Design/Detailed Engineering of bridges (Railway Bridges, Rail cum Road Bridges, Road Over/Under Bridges), tunnels and geo-technical investigations, including condition monitoring of railway bridges & other assets.

RITES continues to provide its services for various projects on turnkey construction basis for Indian Railways e.g. construction work of doubling of track, third line, railway electrification etc. RITES is also undertaking various turnkey contracts of setting up/ augmentation of Wagon POH facilities, Setting up of facilities for refurbishment of LHB coaches, freight train maintenance facility, shifting of existing railway infrastructure and other utilities etc. Considering the extent of new investments in railway infrastructure, RITES anticipates more projects of similar nature in the coming future.

In metro rail sector, RITES is engaged in several projects including General Consultancy for Delhi Metro Phase-III, Ahmedabad Metro, Nagpur Metro and Pune Metro, DDC services of elevated metro stations and Depots (Apparel & Gyaspur) for Ahmedabad Metro, Detailed design for Power Supply and distribution system for Bangalore Metro & Ahmedabad Metro, Proof Checking works for Viaduct and stations for Ahmedabad Metro. In addition RITES is also engaged for providing Comprehensive Consultancy services in planning of Urban and Regional Transport, development of Transport Sector Master Plans, Traffic Engineering/ Management etc.

In quality assurance, over the years RITES has been continuously making significant progress and has considerably enhanced its business with Indian Railway production units, DFCCIL, COFMOW, Railway Electrification, RVNL, IRCON, Indian Railway Stations Development Corporation Ltd. etc. Division is also associated with prestigious non-railway clients like TATA, L&T, GMR, Dilip Buildcon, JSPL, KPTL, KEC etc. besides working for reputed non- railway clients in Government sector like, SAIL, BHEL, Oil PSUs, NTPC, State PHEDs etc. RITES is also providing services such as operation and maintenance of railway system to domestic clients in power, steel, cement, coal and port sector. RITES provides locomotives to the clients on lease basis. Presently RITES is maintaining over 130 Diesel locomotives and 1500 Wagons owned by NTPC, SAIL etc, and has 62 locomotives for leasing to domestic non-railway customers and there is a growing demand of shunting locomotives on lease by non-railway customers. RITES is making steady progress and continues to secure several prestigious projects and provide consultancy services for projects in areas such as highways/road transport/bridge survey; airports and heliports, ports and water resources; passenger/ material ropeways as also for funicular railway projects; project management and design consultancy for development / expansion / up gradation of apex educational / institutional buildings including third party quality assurance; procurement for various government departments for international/national government funded projects; information technology services for software development, implementation support financial / transaction advisory for various PPP projects, project appraisal for investment projects etc.

Engineering consultancy and turnkey solution services provided by RITES for the year include conducting techno-economic feasibility studies, Preliminary Engineering-cum-Traffic study, Final Location Surveys, Geological, Geophysical and Geotechnical Investigation, preparation of detailed project reports, design engineering activities including Rolling Stock Design and Development, procurement assistance, project management activities, quality assurance, inspection, training, construction supervision, materials system management, transaction advisory and commissioning support including operation and maintenance.

SAIL-RITES joint venture on 50:50 basis (SRBWIPL) undertakes to manufacture high-end specialized wagons for the Indian Railways and other clients. Its recent accomplishments include manufacturing of 1495 BOXNHL wagons and rehabilitation of 1080 BOXNR wagons.

Railway Energy Management Company Limited (REMCL), a subsidiary of the Company with 49% equity participation of Indian Railways is strive to procure traction power for Indian Railway under open access, thereby effecting a saving in energy bills of Indian Railway by Rs. 3761 crore during the year and cumulative saving of Rs.14332 crore and to harness the potential of renewable energy on railway land. Establishment of plants for 3 GW of solar energy on railway land is under way.

IX REVIEW OF BUSINESS UNITS/ DIVISIONS

Major projects secured and executed during the year in foreign and domestic segments by various business units are covered below:

RAIL INFRASTRUCTURE DIVISION

Railway infrastructure division provides consultancy in transportation & economics, electrical engineering, signal & telecommunications, Project Management consultancy for Dedicated Freight Corridor, track & survey, geo-technology, civil engineering design through conceptualization, design and project management of rail based transportation system. This division operates through a number of SBUs at Corporate Office, brief of each one is as under:-

TRANSPORT & ECONOMICS UNIT

This Unit is having expertise in transport planning, engineering design and transport economics. It is involved in pre-feasibility studies, techno-economic feasibility studies, detailed project reports pertaining to integrated transport systems, regional and national transport master planning, inter-modal and multi-modal transport systems for all modes of transportation like Railways, Highways, Ports, Waterways, etc. Besides, it undertakes studies related to traffic flow assessment, traffic demand assessment & traffic forecasting for both passenger and freight traffic across various modes of transport. It also undertakes engineering studies for planning and designing of railway yards, rail connectivity to ports, steel power & cement plants and multimodal logistic parks. The unit has done studies both in India and abroad for various government /multi-lateral funding agencies & other organizations. In recent times, it has undertaken feasibility study for containerized bulk movement of food grains (wheat) for Food Corporation of India, rail connectivity to Gopalpur Port, Semi-high speed suburban rail system connecting Bangalore city to Bangalore airport, work pertaining to Nabha Power Plant, etc.

Projects under execution includes Techno-economic Feasibility Study for Development of Integrated Multi-modal Logistic Hub (IMLH) of DMIDC at Nangal Chaudhary in Haryana, Pre-feasibility study for steel freight corridors for MECON Ltd, Development of Rail Infrastructure facilities for handling 22 million tonnes per annum of traffic for JSW Integrated Steel Plant at Vijaynagar, National Rail Plan (NRP) for Ministry of Railways, Feasibility study to evaluate rail movement from Jamnagar Refinery of Reliance Industries Ltd. to its various terminals, consultancy services for carrying out work related to connectivity of coal transportation corridor for Ultra-Mega Power Plant (UMPP) in Sundergarh, Odisha, for Power Finance Corporation Consultancy Limited.

ELECTRICAL ENGINEERING UNIT

This unit provides Project Management Consultancy services, Quality Assurance and Surveillance Inspections in the field of Railway Electrification(1x25kV AC Feeding system & 2x25 kV AT feeding traction systems), Traction Sub-Stations,

Grid Sub-Stations, EHT Transmission line, MV & EHT cabling works, General Electric Substations, Building Electrification, Air Conditioning, Illumination systems, Installation of lifts & escalators; standby Power supply arrangement/ DG sets, Rural Electrification, grid connected roof top solar systems etc. Presently, this unit is executing PMC work of Railway Electrification of sidings for various clients e.g. SAIL, NTPC, BCCL, SECL, SCCL, MUNPL, BRBCL, RINL, THDCIL, NUPPL, UPRVUNL, DFCCIL and main line Railway Electrification works of around 428Tkms i.e. RE work Ringas–Jaipur–Sawaimadhopur section, 188 Rkm (222TKm) of NWR, and Vijaypur–Maksi section, 188 Rkm(206Tkm) of WCR.

This unit is carrying out work of Railway Electrification of sidings at Nabinagar, Meja Thermal Power Project, Lara Thermal Power Project, Kusmunda, Patherdih, THDCIL,UPUVUNL, NTPC and Main line Railway Electrification on SECR and SCR which is more than 880TKm. Presently, this unit is executing Railway Electrification works of sidings and main line for more than 1300 TKms.

This unit also provides services for preparation of Feasibility Study (FS), Preliminary Engineering cum Traffic Study (PETS), Detailed Project Reports, Detailed Engineering (DE) and validation of various reports related to Electrical Engineering Projects.

SIGNALLING & TELECOMMUNICATIONS UNIT

This unit provides Consultancy and Construction Management Services for Railways, Power Plants, Cement Plants, Steel Plants, Refineries, Port Trust, Coal Sectors etc. The scope of work ranges from Concept to Commissioning of the modern Signal

& Telecommunication projects including post commissioning operation and maintenance services. The service spectrum includes planning, preparation offeasibilityreport,DetailedProjectReport,Detailed Engineering, Project Management & Construction Supervision in the domain of Modern Railway Signalling System, Security Surveillance & Access Control Systems, Optical Fiber Communication Networks, Digital Radio Communication Networks, Satellite Communication based networks, SCADA, Mobile Radio Communication etc.

During the year, the unit has completed PMC works of Garlidene, Meja- 2 stations, LARA, Kusmunda. Project Management Consultancy works under execution include provision of Signalling & Telecommunication system in in-plant yards at NTPC (Mauda & Khargone), Steel Plant (Koradi), RINL (Visakhapatnam), MUNPL (Meja) and SCCL (Singareni). This unit has also taken up Signalling & Telecommunication part of works of various Railway projects for Third Line and Doubling works between Anuppur-Pendra Road section & Gooty-Dharmavaram Section of South East Central Railway undertaken by RITES respectively, including on EPC basis.

Works recently secured by the unit include PMC work of Tanda Ghatampur, Sarla-Sipat, telecom work of Gooty-Dharmavaram, Bilaspur yard work and S&T work of RINL and NTPC Khurja.

TRACK & SURVEY UNIT

This unit provides consultancy for studies and investigations for new railway projects, in India and abroad, whether for Conventional Rail systems, Dedicated Freight Corridors (DFCs) or High Speed/ Semi-High-Speed Rail corridors. The Unit has a team of experts with specialization in design of optimum alignments in difficult and mountainous terrains making extensive use of latest technologies including high precision instruments, state-of-the-art equipment, image processing software such as ERDAS Imagine and SOCET SET, alignment design software such as Bentley MX, Bentley Power Rail Track and AutoCAD Civil 3D and alignment optimization software such as Quantm etc. This unit has worked in the past on various railway projects in UAE, Syria, Indonesia, Nepal, Bhutan, Ethiopia, Mozambique, Ghana, Gabon, Senegal and Saudi Arabia, besides India.

Service Spectrum includes Pre-feasibility and feasibility studies for Conventional Railway, Dedicated Freight Corridors, High-Speed and Semi-High-Speed Railway lines; Preliminary Engineering-cum-Traffic Studies and Final Location Surveys by terrestrial/aerial LIDAR and geo-positioning methods with and without using satellite data / photogrammetry; Detailed Project Reports and Detailed Engineering Studies.

A few major projects currently under execution are: Detailed Design of Alignment for Delhi-Ghaziabad-Meerut section of RRTS for NCRTC; Pre-Feasibility Study for Agra-Lucknow-Ajamgarh-Varanasi SEMI-HSR passenger railway line along Agra-Lucknow and Purvanchal Expressways (700km long) for UPEIDA; Feasibility Study and Final Location Survey of High-Speed Rail Alignment along existing Western Railway Lines between Vapi and Virar for NHSRCL; Feasibility Study for Mumbai-Chennai High-Speed Railway (1,370 km long with a design speed of 350km/h) for HSRC; Consulting Services for Providing Alternatives for Proposed Dedicated Freight Corridor Alignment within Andhra Pradesh CapitalRegionforAPCRDA;ConsultancyServicesfor Detailed Design for construction of Single Standard

Gauge Railway line from Tema to Akosombo on Engineering Procurement and Construction (EPC) basis in Ghana (100km) for AFCONS.

GEO TECHNOLOGY UNIT

The unit provides consultancy services in engineering Geology, Soil/Rock Mechanics, Foundation Engineering, Geophysical survey, Ground water and allied fields including diamond core drilling of exploratory boreholes, in-situ and laboratory tests etc. This unit has carried out Geo-technical investigation for a number of prestigious projects in the country and has expertise to provide total consultancy for complete Geotechnical/ Geological/ Geophysical investigation.

The unit is also well equipped with latest state-of-the-art machinery, exploratory drilling equipment (capable of drilling through all type of geological formation up to a depth of 400m below natural ground level), Geophysical instruments for seismic & resistivity survey and latest software for geological

& geophysical data processing and interpretation. The unit has completed GT investigation for 36 structures (Bridges & Viaducts) for Katghora-Dongargarh; deep drilling and in situ testing for LPG storage at Ankleshwar & Vadodara of HPCL; Geotechnical and Geophysical survey for construction of railway embankment over the existing deposited ash bed for Patratu Thermal Power Project of NTPC; Geological, Geophysical and Geotechnical Investigation for six railway tunnels in Koraput between Baiguda to Laxmipur of East Coast Railway.

Ongoing projects include carrying out geotechnical investigations including advanced in-situ testing for rock mined cavern for LPG storage facility of HPCL at Mangalore & geotechnical investigation for elevated section between Dharuhera to Shahjahanpur-Neemrana-Behror of SKK-SNB corridor of NCRTC.

DEDICATED FREIGHT CORRIDOR – SPECIAL PROJECT UNIT

This unit is providing Project Management Consultancy Services for the "Construction of Double Line Electrified Railway track with Signaling and Telecommunication System and related infrastructure for Western Dedicated Freight Corridor (1477 KM) from Dadri to JNPT Mumbai" as a member of consortiums led by Japanese companies.

During the year, commercial run of Indian Railways (IR) freight trains on the newly built Rewari-Madar section (Madar to Ateli) of WDFC covering a distance of about 306 Km has been started.

CIVIL ENGINEERING DESIGN UNIT

This unit provides engineering design services involving planning, design, bidding documents designer support and construction supervision for Railway Bridges, Rail cum Road Bridges, Road Over/ Under Bridges, Approach structures like Rail/Road viaducts, Suspension bridges, Cable Stayed & Extra Dose Bridges and Road/Railway Tunnels for various modes of operation including PPP, EPC etc. The services also include River Engineering involving hydraulic model studies and design of river training and protection works. Recently completed projects include: DPR for construction of 3 important river bridges for S.C. Railway; Third Party Audit of bridge with deficient/ negative Camber for N.F. Railway; Detailed design consultancy and construction supervision of Railway Tunnels on Jiribam-Tupul section of N.F. Railway; Model study for Bogibeel Rail-cum-Road Bridge across river Brahmaputra for N.F. Railway.

Ongoing projects include: Designing, developing, installation and commissioning of Structural Health Monitoring System (SHMS) for 4.94 km long Bogibeel Bridge for N.F. Railway; Design, drawing & proof checking of major bridges (total 19 nos.) for East Central Railway; Rail/Road Bridges comprising of PSC, steel, steel-concrete composite with single/ continuous spans for USBRL project; DPR for two tunnels for South Central Railway; DPR including for Construction of 9 Railway Tunnels for East Coast Railway; Hydrological study for stability/suitability of proposed new single line from Khagaria to Kusheshwar Asthan for E.C. Railway.

REGIONAL PROJECT OFFICES (RPOs)

To cater to clients in various regions in India, RITES has established Regional Project Offices (RPOs). These RPOs provide consultancy for development of Rail Infrastructure, construction of railway sidings and connectivity projects of varied industries such as steel, power, mining etc.

NORTH

This Regional Project Office located at Gurugram provides consultancy services mainly in Haryana, Punjab, Rajasthan and other northern states of India. It provides consultancy services for preparation of detailed project reports, detailed engineering & project management services including planning and design for projects of flyovers, roads, railway sidings, inland containers depots, buildings etc. The RPO has expertise, resources and technical competence to undertake projects from conceptual stage to its completion & commissioning which includes preparation of DPR, Estimates, tendering, execution, budgetary management and quality assurance etc.

Major ongoing projects of this RPO consist of construction of third line from Pendra road to Anuppur (50.1 Km) of Bilaspur Division of SECR, RTRS Track alignment and maintenance at TBRL, Ramgarh Range for 03 Years (Six phases), DPR study for Dedicated Port Rail connectivity from Salegaon to Paradip Port including the formation of a SPV for implementation, operation and maintenance of Proposed Corridor and Review and Suggest design changes of the approved DPR of 3rd and 4th line prepared by Railways from Budhapunk to Salegaon, Third Party Quality Assurance/Audit for work of South Delhi Municipal Corporation, DPR and Detailed Engineering Project Management and Construction of Coal Transportation System for Tanda TPP Stage-II (2X660 MW), Supervision of Box Pushing work under railway line within Railway land near Pragati Maidan, New Delhi, PMC for 5 ROBs /Flyovers at Amritsar, PMC for Railway Siding for BPCL at Asalpur-Jobner, Rajasthan, PMC for Railway Siding for THDCIL at Khurja.

LUCKNOW

This RPO is having projects in Uttar Pradesh, Madhya Pradesh and Bihar and provides services from concept to commissioning viz. Feasibility and Detailed Study, Design & Drawing and Project Management Consultancy for projects in the field of Rail Infrastructure.

The RPO is involved in augmentation of Rail Infrastructure of NTPC Power Plants in Uttar Pradesh and Vindhyanagar, Rail connectivity for Nabinagar and Meja Thermal Power Plants, Feasibility studies & Detailed Project Reports for various Power Plants of UPRVUNL and NTPC including a major project of Jawaharpur Power Plant. RPO-Lucknow is also providing PMC services for the rail network for transportation of coal for NUPPL at Ghatampur. RPO is also providing their services for rail connectivity of almost all the mines of Northern Coalfields Limited.

During the year, Railway siding of Meja Plant has been connected to Indian Railway including NI at Meja, completion and commissioning of 2.4 Km. long viaduct. During the year, RPO Lucknow secured various projects of Railway Siding of Thermal Power Plant and NCL mines.

NAGPUR

This unit is providing customized, Techno-economically viable concept to Commissioning solutions over 35 years for various Rail transport and infrastructure works in the states of, Madhya Pradesh, Chhattisgarh and Maharashtra (Except Mumbai). RPO Nagpur has executed major PMC assignment in the area of Construction of Railway siding for NTPC Khargone, Mouda and Sipat, CSPGCL Marwa, MSPGCL Chandrapur & Koradi, CONCOR MIHAN Nagpur & Nya Raipur, MPPGCL Khandawa, SAIL Bhilai, SECR Bilaspur along with PMC services for ROBs for PWD Maharashtra, MSRDC, PWD Raipur, PWD MP & PWD CG and Box pushing works for VIDC, MPD Gondia etc.

This unit was awarded 5 projects by PWD Raipur, 3 projects by PWD Raigarh and 1 project by PWD Nagpur for FSR, DPR and PMC of ROBs/ RUB work.

2 Projects by MSPGCL for CTR work and other consultancy service work for WCL, SECR Bilaspur, IMC Indore, WRD Solapur etc. RPO Nagpur has also received a Turnkey Project of SECR Bilaspur.

SOUTH

This Unit, located at Secundrabad, covers southern part of India i.e. Tamil Nadu, Karnataka, Kerala, Andhra Pradesh & Telangana states. This Unit has expertise, Resources and Technical Competence to undertake Projects from Conceptual Stage to completion and commencing which includes Preparation of DPR, Feasibility Report, Estimates, Detailed Engineering & Project Management Services, including Roads, Railway Siding works, Buildings apart from maintenance of railway. The projects handled include PMC of Building works such as Engineering Colleges, Polytechnic Colleges, First Grade Colleges, Industrial Training Institutes spread over more than 200 locations across Karnataka State. The unit is also handling PMC of two Cluster Universities at Mysuru and Bengaluru, awarded by Department of Collegiate Education (DCE). The Unit has recently taken up Railway work of Final Location Survey and DPR for the new Railway Line between Belagavi & Dharwad in Karnataka.

RPO is handling work of doubling of track from Gooty-Dhramavaram (Railway Ch: Km 178.000 to

Km 269.000) with a total length of 91 km by SC Railway. The entire stretch has been divided into two Reaches viz. Reach 1 (Km 222.000 to Km 269.000) Gooty to Taticherla (GY-TCA) with a length of 47km & Reach 2 (Km 178.000 to Km 222.000) Taticherla to Dharmavaram (TCA-DMM) with a length of 44 Kms. This Unit has also taken up Feasibility Studies for Capacity Augmentation and Multi Modal Integration Hub at Hebbal Junction, Bengaluru in addition to Conversion of Railway Siding from Narrow Gauge to Broad Gauge from Sambre Railway Station to Hindalco Plant at Belagavi, Karnataka. The unit is also handling DPR of Metro phase-3 work of Namma Metro.

KOLKATA

The jurisdiction of operation of RPO/Kolkata is in the states of West Bengal, Bihar and the seven sisters (North East). This RPO provides consultancy services on Project Management from Concept to Commissioning for development of Rail Infrastructure and allied services of various sectors such as Steel, Power and Coal sectors for various Clients in Central / State Govt. Depts. and PSUs like CIL, IOCL, NTPC, PDIL, SJVNL, etc. This unit diversified and developed expertise in infrastructure projects like water works comprising trenchless technology i.e. micro tunneling work in both elevated structure & cut & cover method, construction of Intake jetty, water treatment plant etc. and river front beautification project of Civil Authorities, namely KMC, KEIP & KMDA. This unit has also been entrusted with re-habilitation and changing of cables for Vidyasagar Setu, Indias longest cable stayed bridge, which will be a first of its kind in the country.

Apart from above, RPO/Kolkata is also providing Project Management Consultancy for Rail connectivity works of different Thermal Power Stations situated in different states namely Raghunathpur TPS (in West Bengal) for DVC, Muzaffarpur TPS & Barauni TPS (both in Bihar) and New Bongaigaon TPS (in Assam) for NTPC. Furthermore, SBU has recently commissioned Doubling work with Non Interlocking (NI) Signalling work (Junction Arrangement) amidst busiest suburban running traffic in Main Line of SE Railway (BasuliyaSutahata-Durgachak section) for Haldia Energy Limited.

BHUBANESWAR

This unit covers South-Eastern part of India viz. Odisha and part of Andhra Pradesh. The unit is involved in developing Rail Infrastructure for different industries like steel, aluminum, coal power and mining sector besides major ports. It also serves major clients like NALCO, NTPC, MCL, RINL, SAIL, CONCOR, Visakhapatnam Port Trust (VPT), Paradip Port Trust (PPT), Subarnarekha Port, Tata Steel & NSPCL.

This unit is well equipped with diversified and developed expertise in execution of transportation infrastructure projects for both rail & road and preparation of FSR & DPR. During the year, this unit handled a prestigious projects of the Government of Odisha i.e. consultancy services from concept to commissioning for establishment of State Forest Academy at Bhubaneswar. This unit also bagged another work of Government of Odisha i.e. pre-feasibility study for Odisha Rail Infrastructure Development Ltd. for a rail link from Tapang to Bhubaneswar Airport. Unit has successfully completed, Concept to commissioning of wagon tippler yard at NTPC, Kaniha and installation and commissioning of diamond crossing in line no.13 at North West of R&D yard, Visakhapatnam Port Trust project during the year.

RAIGARH

This unit works in areas covering part of Chhattisgarh and part of Odisha State and provides services related with development of Railway Infrastructure for different industries in Power, Steel & Mining Sector.

This unit is looking after three mega projects; (i) Preparation of DPR & Construction Management services for NTPC-Lara, near Raigarh for a double line MGR of 67 Route KM (170 TKM), (ii) To provide services as owner Engineers for OPGC MGR at Banharpalli for a single line MGR of 45 Route KM (66.2TKM) and (iii) Construction Management services for NTPC-Khargone for 39.6 Route Km (63.92 TKM). This unit has submitted offers and is looking forward to get some works in mining sector in Chhattisgarh. This unit has got complete in-house expertise for taking up rail infra project at inception stage on concept to commissioning basis, which certainly will help the unit to generate business potentiality in Chhattisgarh & Odisha State, particularly around Raigarh where many industries are coming up in Power, Steel & Mining Sector.

BUILDING AND AIRPORT DIVISION

This division provides consultancy services for construction of institutional, commercial and residential buildings and development of Greenfield and Brownfield airports, airport terminals, ICDs, ICPs and PMC services. Division also provides total solution in the field of station development and associated infrastructure. Division has three strategic business units namely Construction Project Management unit, Airport unit and Special Project-Station Development.

CONSTRUCTION PROJECT MANAGEMENT UNIT

Building Project division is providing Project Management Consultancy and Third Party Quality Assurance, Inspection and Audit Services to various clients and has been successfully executing various prestigious Institutional, Commercial and Residential Buildings and Infrastructure Projects for Central/State Govt. Organization, PSUs, Universities, IIMs, AIIMs, Institutions of National Importance, Autonomous Bodies, Private Sector etc. at various locations in India and abroad.

Its clients include: IIM-Rohtak, IIM-Shillong, NIT-Hamirpur, NIT-Meghalaya, MNNIT-Allahabad, Allahabad University, JNU, Delhi University, Central University of Karnataka, Central University/ Kerala, Central University/Gaya, Indian Council of Agricultural Research, Delhi Jal Board, NOIDA Authority, Container Corporation of India, AIIMS etc. During the year, this SBU was engaged in a number of prestigious domestic projects, which included: PMC of IIM-Rohtak, Business Park of NSIC, Heritage building of Allahabad University, MNNIT-Allahabad, Housing complex of Delhi Police at various locations in Delhi, quality Assurance of DDA Housing complex Dwarka, new AIIMS at Manglagiri, Maduarai, Bibinagar, Deoghar, Gorakhpur, Raebareli, Bhatinda, Bilaspur, Nagpur, Kalyani and Guwahati.

AIRPORT UNIT

The Unit provides comprehensive consultancy services in all aspects of airports and airside infrastructure. The division has successfully completed many projects in the air transport sector in India and abroad.

The range of services provided by the division includes: Project feasibility studies, DPRs, Master planning, Detailed Engineering & Design; Site selection & EIA studies; Topographic Surveys and Traffic Forecasts; Air Traffic Surveys, demand assessment and forecasting, obstruction surveys (OLS); Design and construction management of passenger terminal building, cargo terminal, hangars, workshops & maintenance facilities; design and construction management of airfield pavements, air traffic control tower, technical & operational buildings; Design of Navigational and Communicational aids; Obtaining Airports Licensing & statutory clearances; Airports Economic & Capital Expenditure Studies; Pavement Evaluation using Non-Destructive test devices such as Heavy Weight Deflectometer; Design of Heliports & allied infrastructure; Project Management/Monitoring, Construction Supervision & Quality Control; Design & PMC for Development of Integrated Check Posts (ICPs)/Land ports.

The Unit has been executing international projects such as Design & PMC for Development of Infrastructure at airport in Mauritius and Design & PMC for Development of Land ports at Biratnagar and Nepalgunj in Nepal. On the domestic front, the unit is working on projects such as Design & PMC for expansion of Srinagar International Airport; Design & PMC for up gradation of infrastructure at Belora Airport, Amravati (Maharashtra); Development of Cargo Terminals at Chandigarh, Ahmedabad & Amritsar airports; Development of Shimoga & Hassan Airport (Karnataka), Palia Airport (West Bengal); Development of airports at Kasia (Kushinagar) & Chitrakoot in UP; Feasibility study for development of new greenfield airport at Chhindwara, MP; DPR for development of 7 Phase-II ICPs; and PMC services for construction of UG structures at five locations in India.

SPECIAL PROJECT – STATION REDEVELOPMENT

Combining its extensive experience, in Railway engineering, Urban Development and Building projects, a new unit "Special Project (Station Development)" is created to assist, Government of India in Re-development of "Railway Stations" to world class standards. The unit has been created with the aim to provide total solution in the field of station development and associated infrastructure including Site Evaluation and Land due diligence studies, Techno-commercial Feasibility studies, detailed engineering design, PMC etc.

The unit is dealing with re-development works of Varanasi railway station and Ayodhya railway station and near by areas. Besides this, the unit has entered into an MOU with IRSDC for the development work of eight railway stations across India as PMC Consultant to IRSDC under station Re-development program of Govt. of India.

For the IRSDC works, Techno-commercial feasibility studies of eight stations has been carried out. During the year services are provided for Architectural Planning & Engineering Services for Preparation of Station Development Plan for Re-development of 3 (Three) Railway Stations (Gurugram, Pune & Indore) along with Commercial Development of Land Parcels.

TRANSPORT INFRASTRUCTURE DIVISION

This division provides consultancy services for roads and highways including Expressways, National and State Highways, rural roads including bridges via ducts and tunnels, ports and harbours, water resources engineering, inland water transport, including preparation of feasibility studies, detailed project reports, PMC services, Quality Assurance of such projects including safety audits etc. Division has two strategic business units namely Port & Water Resource (PWR) & Highways.

PORTS AND WATER RESOURCES UNIT

This unit provides consultancy services for Ports and Harbours, Water Resources Engineering and Inland Water Transport (IWT). Presently, this unit is providing Independent Engineer services for three berths

(i) Development of deep draft Iron Ore berth,

(ii) Deep draft Coal berth and

(iii) Mechanization of EQ berth for Paradip Port Trust. This unit has secured Construction Supervision and Project Management Consultancy (PMC) services for development of National Coast Guard Head quarters in Mauritius from Ministry of Defence and Rodrigues, Government of Mauritius. The facilities to be constructed under this overseas project are: Berthing Jetties, Coast Guard Head Quarters Building, Flotilla Support Services, Workshop Building, Marine Ship Lift and Repair yard.

The DPR Study for development of Greenfield port at Ramayapatnam Port for Government of Andhra Pradesh is in final stage of completion. During the year, INCAP (a GoAP Organization) awarded the work of preparation of Detailed Project Report for development of Greenfield port at Machilipatnam to P&WR unit and the same is also under progress.

HIGHWAYS UNIT

Highway Construction SBU is providing consultancy services for third party Quality Assurance/ construction supervision/Authority Engineer/ Project Management Consultancy services/Advisory services for Highway and Bridge Project.

Major projects secured during the year by this unit include: Project Management Consultancy Services (PMC) for Improvement of Ashuganj River Port-Sarail-Dharkhar-AkhauraLandport Road as 4-Lane National Highway Project (Government of the Peoples Republic of Bangladesh); Project Management Consultant (PMC) cum External Technical Auditor (ETA)" for construction of "Purvanchal Expressway" in Uttar Pradesh; Post Construction Quality Audit and Safety Audit of Kundli–Manesar section of KMP Expressway (Km 0.00 to 83.320) and recommendations for improvement of deficiencies, if any.

Major ongoing projects of this unit are Construction of Balance works in High Speed Track (HST) at NATRAX, Pithampur (near Indore, M.P.); Third Party Inspection/Quality Assurance (TPIA) for Construction of Elevated Road over Barapullah Nallah starting from Sarai Kale Khan to Mayur Vihar, New Delhi, Phase-III, SH: Elevated Road, Extra dosed Bridge, Flyover, Clover Leaves, Loops, Ramps, Footpath, Cycle Track, Road Works including Signage, Street Light Works and Allied Works; Four Laning of Vijayawada-Machilipatnam section of NH-9 from Km. 0.00 to Km. 63.800 under NHDP Phase-III to be executed under Engineering, Procurement and Construction (EPC) mode in the State of Andhra Pradesh; Consultancy Service for Authoritys Engineer Baharagora to Singhara section (Four Laning of 111.606 km on NH-6) in State of Odisha on EPC mode; Project Management Consultant (PMC) cum External Technical Auditor (ETA)" for construction of "Purvanchal Expressway" in Uttar Pradesh; Post Construction Quality Audit and Safety Audit of Kundli – Manesar section of KMP Expressway (Km 0.00 to Km 83.320) and recommendations for improvement of deficiencies, if any; Project Management Consultancy Services (PMC) for Improvement of Ashuganj River Port-Sarail-Dharkhar-AkhauraLandport Road as 4-Lane National Highway Project (Government of the Peoples Republic of Bangladesh).

URBAN INFRASTRUCTURE DIVISON

This division provides PMC services in urban transport sector including General Engineering Consultancy services for metro projects, conducting urban and regional transport studies, developing transport sector master plans, including traffic engineering and management surveys. Division has four strategic business units namely: Urban Transport, Urban Transport (General Consultancy), Regional Project Office, Ahmedabad and Urban Infrastructure-Mumbai. Brief about these strategic business units is given below:

URBAN TRANSPORT

This SBU provides Comprehensive Consultancy services in planning of Urban and Regional Transport, development of Transport Sector Master Plans, Traffic Engineering/ Management, Transport Demand Modeling, Comprehensive Mobility Plans, Bus System Planning/ Operation, planning & Design of Rail-Based Mass Rapid Transit System, Station Planning & Inter-modal Integration facilities, Transit Oriented Development Studies etc.

This SBU also provides Comprehensive Consultancy Services in the field of Environment Impact Assessment (EIA), Social Impact Assessment (SIA), Water Supply/Sanitation, Pollution Abatement, Ecology and Biodiversity.

This SBU has recently completed DPRs for Rail Based Mass Rapid Transit Systems in Nagpur Metro (Ph II), Thane Ph I, Feasibility Study and DPR for MRTS in Nashik, Planning of Integrated Building at Ahmedabad HSR and Indian Railway Station, Architectural Planning and Bid Process Management of Sabarmati HSR Terminal, Multimodal Integration Planning for Sealdah Area and Bhiwadi Airport 7 three stations of Mumbai Ahmedabad High Speed Rail, Traffic Improvement Plan of Nagpur Railway Station, Feasibility Studies for Bandra-Kurla Rail Link and Extension of Harbour Line and provision of 5th-6th line between Borivali and Virar in Mumbai. Detailed EIA & SIA studies for Pune metro Phase-I, Chennai metro and CSTM-PNVL Harbour Line including Airport Spur. Tunnels in Jagdalpur-Koraput and Koraput to Singapur Road section in Odisha, Madanpalle and Madagatta section in Andhra Pradesh.

ThisSBUispresentlyworkingonAlternativesAnalysis Reports (AARs) and Detailed Project Reports (DPRs) of MRTS system in Jammu, Srinagar, Varanasi, Thane Ph II, Gurugram, Pimpri Chinchwad, Prayagraj, Gorakhpur, Vijayawada, Comibatore, Chennai Ph II, Comprehensive Mobility Plans for Greater Noida, Jammu, Srinagar, Varanasi, Guwahati, Gorakhpur, Multimodal Traffic Integration for 9 stations of Mumbai Ahmedabad High Speed Rail and Hebbal Junction in Bangalore, Multimodal Urban Transit Pre-Feasibility for enhancing connectivity to proposed

Airport near Jewar, Public Transport Plan for Kolkata Metropolitan Area.

This unit has also undertaken detailed EIA & SIA studies for Ahmedabad Metro Phase-II and Surat Metro required for the project implementation. Preliminary Environmental and Social Examination for Semi-High Speed Rail Corridor from Agra to Varanasi is also in progress.

URBAN TRANSPORT (GENERAL CONSULTANCY)

This unit provides Comprehensive Project Management Consultancy Services in all aspects of urban rail transit systems i.e. Interim Consultancy, Detailed Design, General Consultancy and Project Management of Public Transport Infrastructure and Systems. The systems include High, Medium and Light Capacity Mass Rapid Rail Transit (MRT). SBU has been involved in Supervision of Metro Express line (A Light Rail Transit System) in Mauritius.

Domestic Projects – General Consultancy for Delhi Metro Phase-III, Ahmedabad Metro, Nagpur Metro and Pune Metro, DDC services of elevated metro stations and Depots (Apparel & Gyaspur) for Ahmedabad Metro, Detailed design for Power Supply and distribution system for Bangalore Metro

& Ahmedabad Metro. Proof Checking works for Viaduct and stations for Ahmedabad Metro.

REGIONAL PROJECT OFFICE – AHMEDABAD

This SBU covers Gujarat and neighboring states such as Rajasthan, Madhya Pradesh and parts of Maharashtra for providing service to Central Government departments, PSUs and Private Sector. Services provided by RPO Ahmedabad include Feasibility studies, DPR, Project Management consultancy of Rail siding works, building works, in connection with High Speed Rail project from Ahmedabad to Mumbai. The project includes construction of new CONCOR depot, Bridge Engineering Workshop, Flash Butt Welding Plant, Stores Depot & Scrap Yard, Central Periodic Overhauling (CPOH) workshop and Divisional Maintenance Centre (DMC) for Track Machines, Staff Quarters and other miscellaneous buildings. Construction of CONCOR depot at Khodiyar has been completed during the year and other works are under progress.

RPO-Ahmedabad has successfully completed one of its kind works for launching of Pre-Cast RCC Box Segments in Nov2019 by Cut and Cover Method in a mega 7-hour block on Ahmedabad-Delhi Rajdhani Route for Construction of RUB at Sabarmati for NHSRCL.

bridge works, ROBs/RUBs/Box pushing/ Pipe pushing, Multimodal logistic parks etc. This unit is executing a very prestigious project for shifting of Railway infrastructure and utilities Other ongoing major projects are Private Freight Terminal (PFT) for CONCOR at Varnama/ Vadodara, Rail Trans shipment Hub (RTH) for CONCOR at Swarupganj/ Rajasthan, Enterprise Access Control System (EACS) for ONGC and projects of Third Party inspection for ROBs/ RUBs/ Box pushing/ Pipe pushing and other non-railway client under Municipal Corporation of Ahmedabad, Rajkot and Surat, Gujarat Urban Development Mission (GUDM), Gujarat Water Supply & Sewerage Board (GWSSB)/ Gandhinagar.

URBAN INFRASTRUCTURE – MUMBAI

This SBU is executing Consultancy Projects in and around Mumbai area and is providing project management consultancy services to prestigious clients like CONCOR, IPRCL, MRVC, CIDCO, MIDC, MMRDA and BPCL. The unit is also providing detail engineering services for line capacity works in Central and Western Railway viz. 5th and 6th line of BCT – BVI in Western Railway, 5th and 6th line of CST-KURLA in Central Railway, 3rd line between Nagpur-Sewagram and Kalyan-Kasara section of Central Railway. Unit is conducting survey for various new lines on Central Railway.

Major works of Road Connectivity from East to West Bandra over Suburban tracks were completed for MMRDA. MMRDA (Client) has appreciated the excellent services. This SBU has completed work of Multi modal logistic park at Balli near Goa for Container Corporation of India during the year, while the works of MMLP at Mundra and Tihi Phase-II are in progress. This SBU was awarded the work of 3rd party inspection of Hancock ROB at Wadala by MCGM, Municipal Corporation of Greater Mumbai.

EXPOTECH DIVISION

The division offers integrated export packages for rolling stock including supply, leasing, rehabilitation, maintenance and spare part support. It also renders technical consultancy services for establishment of new and modernisation of workshops, facility planning for rolling stock maintenance, training and technology transfer.

The unit endeavours to provide best rolling stock to clients through continuous technological up gradation, to ensure availability, reliability and customisation as per specific transport needs. Rolling stock is sourced from the production units of the Indian Railways and is customised to suit the transport requirements of clients in other countries. Spare part support is also assured for several years after the delivery of the stock.

During the year, the SBU completed the supply to the Sri Lankan Railways, of six sets of DMUs (78 coaches) and ten Broad Gauge, AC-AC, Diesel Electric locomotives, manufactured at DLW and ICF respectively. Warranty support for these DMUs and Locomotives, eighteen microprocessor-controlled MG Diesel Electric Metre Gauge locomotives supplied earlier to Myanmar Railways and 120 stainless steel high speed coaches supplied to Bangladesh Railways was continued to be provided. RITES also continued to provide expert services to CFM/Mozambique for maintenance of 16 Locomotives and supply of locomotive spares to Myanmar.

During the year, RITES secured new business of supplying two sets of fully air conditioned DMUs comprising 26 coaches, to Sri Lanka Railways as a follow-up order.

QUALITY ASSURANCE DIVISION

This division, a leading Inspection agency in India, renders Quality Assurance and vendor assessment services in India and abroad to large number of clients both in Government and Private sector. Material System Management unit under this division provides comprehensive Procurement, Logistics and Supply Chain Management Consultancy Services.Laboratory testing services also provided by the quality assurance division with labs at Kolkata, Mumbai and Delhi. The division is headquartered at Corporate office Gurugram with five regional offices located at Delhi, Mumbai, Kolkata, Chennai, Bhilai and 36 sub-regional offices spread all over India. Services in the field of Capacity and capability Assessment of manufacturers as well as technical assessment under single point registration scheme of NSIC are also provided by this division.

During current year, the division has considerably enhanced its business with Indian Railway production units, DFCCIL, COFMOW, Railway Electrification, RVNL, IRCON, Indian Railway Station Development Corporation Ltd.etc.

This division is also associated with almost all Metro projects under construction and other major infrastructure projects across India. Division is also associated with prestigious non-railway clients like TATA, L&T, GMR, Dilip Buildcon, JSPL, KPTL, KEC etc. besides working for reputed non-railway clients in Government sector like, Rourkela Steel Plant, Durgapur Steel Plant, Bhilai Steel Plant, BHEL, Oil PSUs, NTPC, State PHEDs, State Electricity boards/Utilities, Smart city projects, State rural and Urban development projects etc. This division is also associated with SAIL for providing third party inspection services for inspection of long products at their conversion and wet leasing agents across India.

The division also carries out inspection of Rails, Plant and Machinery, Wheel sets, Wheel and Axle, Springs and other components of rolling stock in India as well as abroad. Third party inspection work abroad for various items was conducted in Japan, China, USA, Spain, Switzerland, Italy, Finland, Germany, France etc. for Indian Railways and wagon manufacturers.

Bhilai unit of this division is the only unit in India having expertise in Rail inspection. All the rails procured by Indian Railways are inspected by this unit of QA division at Bhilai Steel Plant, Bhilai and Jindal Steel and Power Plant at Raigarh. More than

14 Lakh MT of rails was inspected by Bhilai unit in the current year. This unit also has expertise in inspection of Head hardened rails used for DFCCIL and metro projects.

QA Division is having ISO: 17020 certification, a specialized certification accorded by NABCB (a body under Quality Council of India) covering large number of sectors in the field of inspection for meeting the conformance criteria of Inspection bodies.

QA division laboratories in Eastern and Western Region are accredited and conforming to rigorous ISO/IEC17025 requirements by NABCB. RITES experts are also part of various Standards Formulation committees of Bureau of Indian Standards to share its expertise for constant upgradation of national standards, thereby enhancing its contribution to quality movement at the national level. During the year, QA division has been awarded prestigious CII Award for active customer engagement for customer focused approach.

MATERIALS SYSTEM MANAGEMENT UNIT

The unit has been providing comprehensive Procurement, Logistics and Supply Chain Management Consultancy Services in compliance with the International Best Practices, Guidelines & Procedures of International Funding Organisations (IFOs) and GFR of Govt. of India. The Core Competence of the Unit is to provide a wide range of services in various fields of Materials Management, Supply Chain Management and use of state-of-art technology and resources. Ongoing Projects of this unit include Consultant Services as Procurement of drugs and medical equipment and associated services for National AIDS Control Organization (NACO) under MOH&FW; Consultant Services for Procurement of scientific equipment under Central Sector Scheme ‘Monitoring of Pesticide Residues at National Level under Ministry of Agriculture; Consultant Services as Procurement Agent for NAHEP (National Agriculture Higher Education Project) ICAR, New Delhi, funded by World Bank.

This unit Secured Consultant Services as Procurement Services Provider for procurement of goods and services for Legal Metrology for Ministry of Consumer Affairs Food and Public Distribution, Department of Consumer Affairs, Govt. of India.

TECHNICAL SERVICES DIVISION

This division provides consultancy services for design and development of rolling stock, wet leasing of locomotives, operation and maintenance services of railway sidings for various clients in the power, steel, mining, cement and port sector, consultancy & turnkey solution for setting up of / modernization of Railway workshops and other industrial units and consultancy services for passenger and material ropeways. Division has three strategic business units namely rolling stock design unit, railway equipment services unit, and workshop & ropeway unit.

ROLLING STOCK DESIGN UNIT

Rolling Stock Design (RSD) is the design and development wing of RITES for Mechanical Engineering that provides complete solutions in Rolling Stock Design and Development. It also handles technically complex turnkey projects. It undertakes studies with high technical content such as crashworthiness simulation and field testing, static and dynamic structural analysis simulations, linear and non-linear FEM analysis and diesel engine process studies. Unit also offers solutions in the area of Emission Control Solutions and Environment Friendly Disposal of Municipal Waste, Water Treatment Plants. The spectrum of services offered by this unit includes Design & development of new wagons, Design Optimization, Finite Element Modeling and Analysis, Field testing, Total Project Management, Pre and Post Manufacture Technical Support, Detailed Project Report & Technical Studies, Occupant Protection and Crash Simulation Studies, Technically complex R&D Facilities and Turnkey Projects.

Some of the major projects undertaken by RITES are Design of longer container flat wagon, Design of Food grain Wagon, Design of 20-axle special wagon for carrying 250 ton transformer, Design of 24 axle special wagon for boiler drums transportation, Setting up Fatigue Testing Laboratory at BEML,

Bangalore and fatigue testing of DMRC Bogie Frames, Design of High capacity High Speed Milk Tank Van, Design, development, simulation and testing of crashworthy coach for Indian Railways, Setting up of Wheel Design, Development and Testing Centre at Rail Wheel Factory, Bangalore, installation and commissioning of Diesel Powered High Speed 200 KMPH SPART (Self Propelled Accident Relief Train), Setting up of Waste to Energy Pilot plants for Indian Railways. With the development and advancement of technology, automatic predictive maintenance has now become feasible. Unit is involved in a project called SMART Yard in which various transducer technologies capture relevant data of the freight wagons for predictive maintenance and identify defects in advance. Unit is also working on a study on reduction of pit-line examination time of trains for Indian Railways and bench marking of maintenance practices with international railways, study for improvement in freight train examination practices over Indian Railways, study of Emissions from diesel locomotives and setting up of emission standards. Turnkey Project for Installation of OnLine Monitoring of Rolling Stock (OMRS) consisting of Acoustic Bearing Detector (ABD) and Wheel Impact Load Detector (WILD) on DFC is also being executed.

WORKSHOP & ROPEWAY UNIT

Workshop SBU provides total c o n s u l t a n c y services from concept to commissioning for setting up of / modernization of Railway workshops and other industrial unitsrangingfrom preparation of techno-economic feasibility reports, detailed project reports to turnkey execution including Civil, Electrical and

Mechanical works. It also provides consultancy services for passenger and material ropeways and funicular railway systems. During the year, the unit provided technical consultancy services for Group Incentive study at Guntupalli, Wagon Tipler NALCO, Technical audit of Jivdani Funicular Ropeway and Feasibility cum Detailed Project Report on composite repair workshop of wagon and EMU/ MEMU at Kolar.

In addition to the above, Workshop unit is undertaking turnkey contracts of setting up of Wagon POH facilities at Bikaner workshop, NWR; Augmentation of wagon POH facilities at Kurduwadi workshop, CR; setting up of Wagon POH factory at Dalmianagar, ECR; Setting up of facilities for refurbishment of LHB coaches at New Bongaigaon, NFR; Freight train maintenance facility with routine overhauling facility for Freight Wagon at Sarla, East Coast Railways; Provision of Diesel Electric Multiple Unit/ Mail Line Electric Unit shed at Lumding, NFR; Project management consultancy services for Supply and Commissioning of M&P at Ahemdabad for FBW, Bridge Workshop and CPOH Vatva with NHSRCL and Modernization of workshop to enhance POH capacity from 75 to 100 coaches per month in carriage workshop, NWR, Jodhpur. Workshop SBU is not only undertaking projects from Indian Railways, but is also undertaking the works of PSUs like various M&P supply and commissioning projects of NTPC.

During the year, the ropeway unit has completed the construction work of Jammu Ropeway Project and Guwahati Ropeway Project and provided services for ropeway projects at Rajgir & Banka (Bihar) and Sholingur & Ayyarmalai (Tamil Nadu).

RAILWAY EQUIPMENT SERVICES UNIT

This unit is a leading service provider for Non-Railway customers in Power, Steel, Mining, Cement and Port Sectors. Railway Equipment Service is a complete one-stop solution for Operation & Maintenance of Diesel Locomotives, Wagons, Railway track, Rehabilitation of Railway Assets and studies pertaining to operation & maintenance for improving efficiency and productivity. The division presently also owns 62 locomotives which are operating on wet lease basis at Major Ports (Adani-Dhamra, Visaphapatnam, Paradip, Mumbai, Kolkata etc), Steel Plants (Bhilai, Rourkela, Burnpur, Tata Steel-Kalinganagar etc.) and other sectors.

The unit is maintaining over 130 Diesel locomotives and 1500 Wagons owned by NTPCs, SAIL etc. The division has also taken up Higher Schedule maintenance/Repair/Modification of Diesel locomotives of NRCs both at Client premises as well as in Railway Workshops.

List of major contracts secured/renewed during the current financial year are: Ports-Mormugaon, Visakhapatnam, Paradip, Gopalpur; Steel-SAIL Bhilai, SAIL Rourkela, TATA Steels, Uttam Value Steels, RINL-Visakhapatnam; Mines-SAIL Bolani, SAIL Gua mines etc.; DFCC-L&T ECC, TATA ALDESA, CONCOR; Power Plants-NTPCs (Talcher, Farakka, Kahalgaon, Mouda, Singrauli, Korba, Rihand, Tanda, Khargone, Sipat etc.).

FINANCIAL SERVICES DIVISION

Privatization and Concessions Unit and Information Technology Unit are covered under this division.

PRIVATISATION AND CONCESSIONS UNIT

This unit provides Transaction Advisory services for various Public Private Partnership projects in Infrastructure sector, Project Appraisal for Investment, Legal Advisory for Institutional framework and Procurement contracts. The unit is currently undertaking assignment for providing Advisory Services through management consultant during functioning of National Rail & Transportation Institute. During the year, the unit also secured mega assignments of Ministry of Railways with respect to Consultancy Services for PPP in passenger train operations which include providing of transaction advisory services for engaging private operators to efficiently facilitate passengerservicesincludingoperationofpassenger trains and Advisory services for Corporatisation of Production Units of IR to bring in synergy and efficiency through combining various PUs based on their line of business.

In Railway sector, unit continued to provide legal consultancy services for Diesel Locomotive Factory at Marhowra (Bihar) and Electric Locomotive Factory at Madhepura (Bihar). The unit also provided advisory services to DFFCIL for its project of Dankuni-Gomoh section of EDFC of 282 kms to be developed on PPP format, selection of service provider to procure, operate & maintain specialised wagons for bulk transportation of food grains for FCI, selection of leasing partner for leasing of metro coaches for its Line 5 project for DMRC. Unit continued to provide consultancy services to various clients/ in-house units for infrastructure sectors such as ports, urban infra, urban transport, etc.

INFORMATION TECHNOLOGY UNIT

Information Technology unit offers consultancy services to Railway, Non-Railway Government and Public Sector organizations in the field of web based technologies, Feasibility study, System Analysis, System Design, Software Development, Implementation support, Identification of Hardware & System Software requirements, user training and software conversion/porting of Computerized Commercial Applications particularly in the areas of Company Accounting, Payroll, Material Management, Workshop Management, etc. The major on-going projects include; development of budget module for preparation of fund management system, Govt. of Tripura, etc. Unit also provides annual maintenance support for various application software developed for clients like Ministry of Railways, IRCON, Govt. of Tripura, etc. IT SBU has implemented SAP ERP in the organization to support its business operations, enhance its core capabilities to gain competitive advantage in market. IT unit has its own state of art data centre equipped with high-end blade servers, network equipment, modern surveillance system, fire detection, fire suppression etc. In order to secure the data a Disaster Recovery facility for its state of art SAP data center has been established. The unit also supports the in-house needs of RITES by providing services for hardware procurement, Access to internet and corporate e-mail services, etc. RITES has successfully implemented Government e-Procurement System of NIC (GePNIC) under Central Public Procurement Portal (CPPP). Information Security Management System (ISMS) 27001 has been documented and implemented in few identified activities of the organization. The certification of ISMS is in process. To move towards paperless office, the unit has implemented e-office software across all offices of RITES. Creation and movement of files, letters, approvals, etc. is done in electronic format resulting in efficient management of documents, cost effective and fast disposal of cases.

HUMAN RESOURCE DEVELOPMENT

Being a premier consulting organization, the Company is constantly enhancing its knowledge and professional pool by inducting the desired professionals every year. The Human Resource Department is committed and focused to achieve deliverables in terms of talent acquisition, employee engagement, talent retention, career progression, welfare and development of the human capital. By offering programs designed to promote personal and professional career growth, it aims at improving organizations efficiency, productivity and profitability.

EMPLOYEE STRENGTH & ITS ATTRITION

The Company takes pride in its highly motivated and competent human resource and its contribution. The total employee strength of our company stood at 3,156 as on March 31, 2020.

Employee strength as on 31.03.2020

Regular 1,970
Contractual 785
Experts 240
On Deputation 161
Total 3,156

Company is having one of the best HR policies in the sector, which are helping it in employee retention and reduction of attrition of regular employees. The attrition rate during FY 2019-20 has reduced and stood at 2.17% in comparison to 2.32% during last year.

Attrition rate of regular employees

Year Rate
2017-18 3.28%
2018-19 2.32%
2019-20 2.17%

EMPLOYEE PRODUCTIVITY

There has been a steady growth in the employee productivity over the past decade. The total income of the company for FY2019-20 is Rs. 2,665 crore. The overall income per employee for FY2019-20 stood at Rs. 0.83 crore as compared to Rs. 0.67 crore in FY2018-19.

Table for graph on Income per employee trend

Year Total Annual Income (in Rs. crore) Average No. of Employees*
2015-16 1,278 3,153
2016-17 1,507 3,200
2017-18 1,587 3,267
2018-19 2,164 3,233
2019-20 2,665 3,199

*Average monthly number of employees during the year

RECRUITMENT

To maintain its competitive advantage, the Company is determined to induct the best and talented manpower across the hierarchy through various modes viz. fresh Graduate Engineers, Management Trainees, induction of experienced personnel from the open market, on deputation and on an absorption basis from other Government departments and Railways, hiring of retired staff and on third-party payroll.

The induction is done on a regular basis for long-term talent pipeline and also on tenure-based employment for projects – some of which are Dedicated Freight Corridor, Metro Projects in Ahmedabad, Nagpur and Pune and Light Metro project in Mauritius. The Company has adopted best recruitment practices for providing equal opportunities and a harmonious environment for the advancement of SC, ST, OBC, Minorities and women employees. These policies indicate the open and innovative mindset of the management with a strong emphasis on becoming "Equal Opportunity Employer".

During the year, the Company inducted 161 employees (84 regular and 77 on tenure-based appointment); as a policy of inclusive employment, 84 of those inducted belong to the SC/ ST/ OBC/ EWS category. Further, five PWD candidates were also inducted during the period. The Company has also implemented EWS reservation with six EWS category employees being inducted. A selection process for tenure-based appointments has also been initiated. In addition to the open market recruitment, campus recruitment was also done from premier institutes like SCMHRD-Pune, IIM-Ranchi and ICAI. Apart from induction at the entry level, recruitment at the highest level of General Manager in Finance and IT was also completed in 2019. The process is going on in other critical functions as part of managements strategy to strengthen the top leadership rung.

These diverse induction methods allow the Company to boast of a rich talent pool comprising experienced and fresh graduates hired from IITs, NITs, IIMs, XLRI, SCMHRD and MDI, etc.

CAREER PROGRESSION

The promotion policy of the Company is robust and time tested. It provides the best opportunities to the deserving employees for career progression and succession planning.

Consistent with merit, suitability, performance and professional attainments commensurate with the business needs of the organization, the employees are promoted to senior positions. During the year, employees (under consideration) were provided pre-promotional training – 240 employees have been promoted to the next levels (200 executives and 40 non-executives). Besides, 17 non-executives have been placed in higher grades to provide financial upgrade, on the completion of long years of service in their existing grades.

DEPUTATION

To meet its continuous need for trained and experienced manpower, especially in view of project requirements, experienced and trained manpower is inducted from Indian Railways and other Government departments on deputation on a fixed tenure basis. During the year, 45 personnel were inducted on deputation, bringing the total manpower on deputation to 161.

TRAINING AND DEVELOPMENT

Training and Development is a high focus area and employees being trained in various domains such as

Contract Management, Arbitration, PMP, IPMA-level D Certification, Project Management, Managerial Effectiveness, Negotiations, Business Development and Strategy, Risk Management etc. Besides, various technical programmes were organised for employees and senior business leaders at the level of General Manager and above have been nominated for leadership programs conducted by premier institutes such as IIMs, ISB Hyderabad, etc. in India and abroad. The Company has provided more than 10,000 days of training to its employees during 2019-20. Employees were also encouraged to join e-learning programmes and courses in the fields of strategy, procurement, financial modeling, contract management, HR Analytics, etc. were made available online in partnership with reputed agencies. A mobile app-based learning system has also been developed for employees to provide them 24*7 access to learning content from anywhere. As a part of the MoU target of training 10% of executives in premier business schools and technical institutes, efforts were made to exceed this target.

SUCCESSION PLANNING

The Company believes in consistently improving its systems and processes to attract, motivate and nurture talent. A Succession Plan for middle and senior management level positions was updated for implementation. Last year, the Company had assessed its HR processes and practices against the People Capability Maturity Model (PCMM) framework, a global framework developed by CMMI. This year, we have upgraded ourselves to the PCMM Level 3. The Company is committed to achieving the next level.

PERFORMANCE MANAGEMENT SYSTEM

The Performance Management System has been automated by using IT tools for employees, linking it with the variable pay called Performance Related Pay (PRP). The PRP system helps in capturing the different components of performance of the employee under heads such as company performance, team performance and individual contribution in achieving the Companys annual objectives. The emphasis on team performance motivates the employees to work together with synergy and cohesiveness to achieve team objectives, resulting in attaining long-term goals of the company.

USE OF INFORMATION TECHNOLOGY TOOLS

To maintain business continuity and enable the staff to work from home, the HR Department has taken a leap forward to keeping records in digitized format and implementing e-office for day-today operations. HR functions such as Employee Records, Leave Records, Performance Management System (PMS), Annual Property Returns, Employee Engagement, etc. have been put in an e-format, thereby reducing paper use, bringing transparency and efficiency, and improving quality. The policies and programmes are communicated to employees through the Employee Self-Service portal and various social media modes.

EMPLOYEE ENGAGEMENT

Employees have been given an opportunity to be part of decision making on issues such as service conditions, resolving grievances and improving productivity by setting up the consultative council called CONCERT. The council comprises elected and nominated representatives of all sections of employees for continuous communication. Periodic meetings are held by the management to achieve the above mentioned objectives.

In-house sports events are organized periodically to recognize the talent, culminating into Annual Sports Day. Participation of employees and their family members in the event is encouraged. Employees of all age groups are motivated to participate in various games. Performance in these sports activities is duly recognized by awards and trophies.

MOTIVATION, AWARDS & RECOGNITION

To recognize the exceptional performance, periodic awards and recognition are given to employees. Every quarter, one executive and one non-executive employee are awarded with "Employee of the Quarter" awards. The meritorious employee delivering the exceptional performance in a financial year is awarded with "Employee of the Year" award. Also, the employees who publish their articles on technical subjects in reputed national and international journals or present their papers in national/international seminars are awarded. Besides, the team performance is recognized where SBUs are awarded for their achievements in categories such as "Best Overall Performance", "Best Operating Margin", "Highest New Business Secured", and "Milestone Project Executed". While determining the performance, parameters such as novelty in systems and procedures introduced, technology introduced, quality and timeliness in completion of projects are taken into consideration. In addition, various individual and group awards are given to employees for their exceptional performance during the year.

EMPLOYEE WELFARE

During the service, employees have been granted liberal perks, allowances and facilities in terms of monetary and non-monetary benefits such as transportation, housing, leased accommodation, subsidized food and medical insurance. The primary objective is to enhance their quality of life. Thus, the Company has implemented various schemes to improve the overall welfare of its employees. Apart from incorporating the statutory benefits such as Maternity & Adoption Leave, First Aid Facility,

Payment of Minimum Wages, ESI, etc, additional benefits have been incorporated in the policies such as personal healthcare (regular medical check-ups), reimbursement of prolonged treatment expenses, availability of allopathic, ayurvedic, homeopathic doctors and facility of alternative therapy, recreational activities like gym facility, provision of free tea/coffee through vending machines, and merit scholarship cash awards to wards of employees for education and for pursuing higher education etc. Employee Assistance Programs in the form of training, advances, house lease policy to provide better living conditions, relief from distress to employees suffering from prolonged illnesses such as TB, leprosy, cancer, mental diseases or any other terminal disease, when on leave without pay, and supply of artificial limbs when necessary to staff below the Executive-I category are in practice. Periodic gifts like superannuation gifts, gift for employees marriage and his/her wards marriage, birthday gift, picnic gift, Diwali gift and Annual Day gift, etc. are granted to enhance a sense of belongingness among employees and the Company. Liberal superannuation benefits consisting of Provident Fund, Gratuity, Pension and Post Retirement Medical Scheme are in vogue. These schemes while working as a retention tool also provide social security to employees. Funeral expenses are provided in case of unfortunate death of an employee and death of a dependent (for spouse or children) of Group-D (Non-Executive Cluster I) staff, and ex gratia on death/permanent disablement of an employee while in service is provided to the dependent family members. As a measure to provide social security to the family members, liberal insurance covers in the form of personal accident insurance policy, EDLI insurance policy, term plan and savings-linked insurance have been taken for employees to take care of unforeseen situations.

WOMEN EMPOWERMENT

The Company has adopted best practices to ensure equal opportunity and provide a harmonious environment for the advancement and growth of women employees by conducting several programmes on gender issues, sexual harassment and conducive working conditions. At the same time, opportunities are given to women employees to participate in meetings, project works, and committees, etc. to foster the practice of equal opportunity without any gender bias. Women employees are the backbone of the Company who not only mark a significant presence in the human capital, but also play a significant role in the overall development of the Company. The management has always been pioneer in adopting practices and creating an environment where women feel stronger, confidentandempoweredtotakedecisions.Creating a pipeline of women leaders using repeated initiatives for encouraging ownership and entrepreneurial skills has been one of the key activities during the year. To bring out their untapped potential, more and more women employees are being considered under the succession planning at various leadership positions. Many welfare measures have been implemented keeping in view the needs of female employees like crche facility, safe & secure workplace, health & hygiene programmes, creation of a helpline number, regular feedback for taking suitable action and optimizing their productivity at the workplace. International Womens Day was celebrated on March 8, 2020, in which all women employees from Delhi-NCR participated wholeheartedly and also showcased their artistic talents and received much appreciation from their male counterparts. To provide safe and secure working ambience to its women employees, a committee for Prevention of Sexual Harassment at Work Place (POSH) is in place. It has created a distress helpline number and an e-mail id for registering concerns. To create awareness and sensitize employees on the issue, posters have been displayed on all key locations places on the office campus.

GRIEVANCE REDRESSAL

A Centralized Complaint Cell has been functioning for registration, monitoring & disposal of grievances raised by staff, ex-employees and public. The employees can raise grievances online through the Employee Self Service (ESS) Portal. Any member of public or ex-Employee of the Company can also submit their complaint through the Company website. In addition, online grievances can be made to the Ministry of Railways through the Centralized Public Grievance Redress & Monitoring System (CPGRAMS) portal. Further, the Chairman and Managing Director has earmarked every alternate Tuesday for hearing employees grievances.

WHISTLEBLOWER POLICY

RITES has a separate and well-structured Vigilance Department, which deals with frauds or suspected malpractices involving employees, contractors, suppliers, consultants, service providers or those doing business with the Company. Besides, a whistleblower and fraud prevention policy is also in practice to monitor and rein-in unethical activities.

CONTRIBUTION TO GOVT. OF INDIA INITIATIVES

The Company has always been proactively supporting initiatives of the Government of India such as Skill India, Swachh Bharat Mission, Start-up India, Make in India, including MSMEs, Digital India, promotion of Solar Ecosystem by formulating its business or governance objectives in line with the government plans.

ENVIRONMENT PROTECTION & ENERGY CONSERVATION

All Company offices across the country maintain environment-friendly work processes and sustainability, providing clean, safe and healthy working conditions to its employees. The Company follows all conventional and technological methods to conserve energy and resources and reduce waste generation. It has installed sewage plants solar plants and rain harvesting system at its office campuses. Besides, the launch of e-office (apart from its other benefits) is also in line with the Companys commitment to reduce carbon footprints.

PROMOTING MSMEs

During the year, the Company procured goods worth Rs. 45.92 crore from Micro, small and Medium Enterprises (MSMEs), including those belonging to SC/ST and women categories.

Being a Central Public Sector Enterprise, the Company procurement policies and practices are guided by the government policies and practices. These are based on transparent procurement mechanisms, which promote procurement from technically competent suppliers. However, care is also taken for the interest of local suppliers and contractors within the framework of CVCs guidelines. The Company has a special policy to encourage MSMEs and those belonging to SC/ST and Women categories. It has taken necessary steps for implementing the public procurement policy for procurement from MSMEs. Necessary provisions have been incorporated in all tenders for materials and services. In general, minimum 25% of the requirement has been reserved for eligible MSMEs in tenders. The Company has always encouraged local suppliers to participate in its tendering process and also promote them through training and handholding programs. Our continued pursuit in this direction has seen improved participation of small and local players and socio-economic development of communities in and around our operational locations.