The Board of Directors of RITES Ltd, a Miniratna (Category – I) Schedule ‘A’ Public Sector Enterprise under Ministry of Railways, in its meeting held on 27.12.2019 has approved investment of Rs. 48 crore for acquiring a stake of 24% in Indian Railways Station Development Corporation Ltd (IRSDC).
- This investment is being done at face value i.e. Rs. 10 per share.
- It will provide RITES an opportunity of growth in the emerging field of development of railway stations.
- Investment of Rs. 50 Crore was already approved by BOD in its 245th meeting held on 13.11.2018 subject to fulfilment of certain conditions and to its further approval in its meeting held on 27.12.2019.
- IRSDC is a company promoted by RLDA and IRCON to take up the railway station development work on pan India basis.
- In initial phase of development, 60 railway stations have been identified along with associated land monetisation to be taken up by IRSDC on EPC, PPP or self—development mode.
- After this infusion of equity by RITES, the shareholding in IRSDC will be between RLDA, IRCON and RITES in the ratio 50:26:24 respectively for an enhanced capital value of Rs. 200 Crores.
About RITES Ltd
RITES Ltd., a Government of India Enterprise was established in 1974, under the aegis of Indian Railways. RITES is incorporated in India as a Public Limited Company under the Companies Act, 1956 and is governed by a Board of Directors which includes persons of eminence from various sectors of engineering and management. RITES Ltd., an ISO 9001:2015 company, is a multi-disciplinary consultancy organization in the fields of transport, infrastructure and related technologies.