RITES Signs MoU with CFM Angola for Rail Infrastructure Development
RITES shares, a prominent transport infrastructure consultancy and engineering firm, are poised to be in the spotlight on Wednesday morning following the company's announcement of a MoU with Caminho De Ferro De Moçâmedes (CFM) Angola. This collaboration aims to drive the development of railways and related infrastructure, with a particular focus on the supply of rolling stock.
RITES' Stock Performance
After experiencing 9.46% dip in its stock value on Tuesday, RITES has seen an impressive 50% year-to-date surge. This recent MoU marks a significant step for the company as it expands its global reach and strategic initiatives.
Key Highlights of the MoU
Under the terms of the MoU, RITES, and CFM Angola are set to cooperate in several critical areas:
• Supply of Rolling Stock
• Railway Infrastructure Projects
• Repair and Maintenance of Rolling Stock
• Operations and Maintenance of Railway Infrastructure
• Information Technology Services
• Technical Maintenance
• Master Planning, and more.
RITES: A Global Transport Consultancy Leader
RITES is a public sector enterprise renowned for its involvement in the transport consultancy and engineering sector in India. The company boasts diversified services and a widespread geographical presence, having successfully executed projects in over 55 countries across Asia, Africa, Latin America, South America, and the Middle East region.
RITES' Focus on Innovation
In addition to the CFM Angola collaboration, RITES recently entered into another MoU with iHUB DivyaSampark at IIT-Roorkee. The partnership aims to explore business opportunities related to innovative technologies, including Artificial Intelligence (AI) applications in areas such as rolling stock maintenance, inspection, maintenance of bridges, office management, and airports.
This collaboration will see RITES and iHUB DivyaSampark IIT-Roorkee working together on various projects, events, and network facilitation to foster innovation in Cyber-Physical Systems and Industry 4.0 technologies. AI-based solutions will also be explored to meet the industry's evolving requirements.
Notably, in August, RITES secured the lowest bid (L-1) in a tender floated by the Railway Board for service testing and inspection of rails for the Indian Railways within India. This contract is slated for execution over a five-year period, with the possibility of a one-year extension. The total order size includes the inspection of 60,00,000 tonnes of rails, with estimated inspection fees of ₹65.4 crore plus taxes over the five-year duration.
Current Stock Performance
RITES was trading at ₹537.00, marking a notable increase of 4.64%, on the BSE. The stock reached its 52-week high of ₹584 on September 11, 2023, and its 52-week low of ₹281.40 on September 19, 2022. It currently trades 8.05% below its 52-week high and an impressive 90.83% above its 52-week low.
This development positions RITES as a key player in the global transport consultancy and engineering landscape, poised for continued growth and innovation in the coming years.
RITES Submits Inception Report for Tricity Metro Project
Additionally, Rail India Technical and Economic Services (RITES) has taken a significant step forward in the development of a Metro system in the Tricity region, as it submitted its inception report to the Chandigarh Administration. This milestone follows the timely allocation of funds by both the Punjab and Haryana governments for the preparation of the Detailed Project Report (DPR) for the Tricity Metro rail project.
A senior officer from Chandigarh's transport department commented, "We have received the inception report, and RITES is scheduled to provide us with a detailed presentation within the next few days, outlining their approach for preparing an Alternative Analysis Report (AAR). Once the AAR is concluded, the DPR will be prepared."
Last month, the Punjab government released its share of ₹1.37 crore, while just last week, the Haryana government also contributed ₹60 lakh for the DPR preparation. RITES has estimated the cost of preparing the DPR to be approximately ₹6.54 crore, with an anticipated completion date of March 2024. Subsequently, further approvals will be sought.
Funding Structure and Project Cost
Regarding the funding structure for the entire Metro project, it has been determined that 20% will be funded by the states, 20% by the Central government, and the remaining 60% by a lending agency. The current estimated cost of the Metro project stands at approximately ₹10,570 crore.
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