July 05, 2008

Rites to invest INR 200 crore in rolling stock business

Rites Limited has announced that it would invest close to INR 200 crore over the next 12 to 18 months to expand its rolling stock business. Mr VK Agarwal MD of Rites said that "We propose to invest INR 195 crore to procure rolling stock for the purpose of leasing in the next 12 to 18 months."

Mr Agarwal said that the INR 195 crore investments is a part of company's overall INR 350 crore investment plans over the next 3 years. A big chunk of the remaining would be used to build road projects in the public private partnership model within the country.

Rites Limited procures locomotive engines, passenger coaches and wagons domestically and leases them out internationally to help creating the infrastructure in the developing nations, particularly in Africa and Latin America. Its subsidiary in Tanzania is now engaged into developing and maintaining rolling stock and rail infrastructure. Another subsidiary is engaged in Mozambique as well with a similar kind of project for transport of coal.