Government invites bids from merchant bankers for RailTel IPO

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The government is looking to divest up to 25% stake in RailTel Corporation, and is scouting for merchant bankers to manage the listing process. The government will appoint up to three merchant bankers to manage the listing process and has invited bids from them by June 11.

Also Read : FICCI suggests inclusion of Coal and Coke in LTTC policy to Railways

More Information:

  • The paid up share capital of the Railway PSU stands at Rs 320.93 crore and Profit After Tax for 2017-18 was Rs 156 crore.
  • As on March 31, 2018, RailTel Net worth stood at Rs 1,249 crore.
  • While inviting bids from merchant bankers, the Department of Investment and Public Asset Management (DIPAM) said,”The Government of India is considering to divest up to 25 per cent paid up equity share capital in RailTel out of its 100 per cent in the domestic market through initial public offer (IPO).”
  • The RailTel, a Miniratna PSU, is one of the largest neutral telecom infrastructure providers in the country owning an optic fiber network on exclusive Right of Way (RoW) along railway track.
  • The company provides broadband telecom and multimedia network across the country.
  • In December, the CCEA (Cabinet Committee on Economic Affairs) approved a plan to list 6 public sector companies, including RailTel Corp.
  • Last month, the government raised Rs 476 crore by selling 12% stake in Rail Vikas Nigam Ltd (RVNL) through IPO.
  • In current fiscal, DIPAM is also planning to launch IPOs of 2 other rail CPSEs – Indian Railway Catering and Tourism Corp (IRCTC) and Indian Railway Finance Corp (IRFC).
  • The government has budgeted to raise Rs 90,000 crore through PSU divestment in the current fiscal, compared to Rs 84,972 crore raised in 2018-19.

Southern Railway to upgrade 61 trains under project ‘Utkrisht’

Date : May 13, 2019

The Southern Railway will complete upgradation of 61 trains under the project ‘Utkrisht‘ soon. The Tambaram-Nagercoil tri-weekly express, which was upgraded under the scheme, was flagged off from Tambaram recently.

More Information:

  • An official said,”In the first phase, 10 trains were upgraded under the Utkrisht programme. In the second phase, 64 trains were allotted for upgradation for Southern Railway.”
  • Out of that, 3 trains have been upgraded and the upgradation of the remaining 61 trains will be completed soon, the official said.
  • The total outlay for upgrading 64 trains in Southern Railway was Rs 67.75 crore, he said.
  • The Tambaram-Nagercoil Express has features include-
    • Hydrophobic coated wash basin
    • Epoxy flooring in the toilet
    • Vinyl wrapping of doorway and gangway
    • LED lights
    • Bay mobile charging points
    • Glowing berth number indication boards
    • Odourless bio-toilets
    • WiFi infotainment in air conditioned coaches
  • Utkrisht project involves upgradation of 640 train rakes for improvement in passenger amenities and comfort in the next 2 years at an estimated cost of Rs 400 crore.
  • It involves giving new paint to the coaches, changing damaged seats and berths, refurbishing the toilets, providing LED lighting and braille inside the compartments and gangways, and enabling coach maintenance services onboard.
  • Last year in December, Kongu Express which runs between Coimbatore and Hazrat Nizamuddin was the first train to be flagged off under project Utkrisht of the Southern Railways.
  • The coaches of the train were refurbished at a cost of Rs 60 lakh.
  • Chennai-Sengottai bi-weekly Silambu Express also was refurbished under the project in February this year.

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Some Past Related Updates which might interest you :

 11 May, 2019: Konkan Railways signs agreement with Nepal to supply two 1600 HP DEMU train sets

 03 May, 2019: IRCON wins Railway work worth USD 91.27 Million in Sri Lanka

 02 May, 2019: Northern Railway in Association with Rail Coach Factory, Kapurthala Holds Vendors Meet

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