Africa-Press – Mozambique. RITES Limited has announced the receipt of a Letter of Intent (LOI) from ICVL Mozambique for the supply of new Cape Gauge Diesel Electric Locomotives along with preventive maintenance services, as per an exchange filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The scope of the contract includes the supply of new Cape Gauge Diesel Electric Locomotives with a provision for preventive maintenance services and consumable spares at site. The order has been awarded by an international entity, further expanding RITES’ footprint in overseas railway infrastructure and rolling stock projects.
As disclosed, the execution timeline for the project is structured in two phases. The supply portion is to be completed within 15 months, followed by 24 months of maintenance services, ensuring sustained operational engagement over the medium term.
The total consideration for the contract is USD 20,602,500, making it a significant international order for the company. RITES has also clarified that neither the promoter nor the promoter group has any interest in the awarding entity, and the contract does not qualify as a related party transaction, confirming that it has been entered into on an arm’s length basis.
