Date Of Post: 11 June, 2018
New Delhi: RITES Limited will buy a 25% stake for Rs 250 crore in IRSDC (Indian Railway Station Development Corporation Limited). “The RITES board has approved buying 25% stake in IRSDC for Rs 250 crore. The decision was taken in March. We are in the process of finalizing details and participation agreement after which agreements would be signed,” Rajeev Mehrotra, chairman & managing director of RITES, said in an interview.
- RITES plans to appoint a nominee on the IRSDC board, Mehrotra added.
- Although RITES doesn’t have plans to foray into station development, it can provide technical services needed for station & real-estate development.
- S.K. Lohia, Managing Director of IRSDC, confirmed the development and said the documents & plans requested by RITES are under preparation.
- IRSDC is a JV (joint venture) company between IRCON (a government undertaking under ministry of railways) and Rail Land Development Authority (RLDA) (a statutory authority under ministry of railways) with a stake of 51:49.
- However, in September, during IRSDC’s annual general meeting a decision was taken to sell 1% of IRCON’s stake to RLDA for about Rs 40 lakh to make it a equal JV.
- “Railways plans to restructure IRSDC where four entities RLDA, IRCON, RITES and CONCOR, all under Indian Railways would have 25% stake each in IRSDC. The arrangement will help to provide more autonomy to IRSDC and get a capital of around Rs 1,000 crore to undertake station development,” a senior railway official said.
- The IRSDC will redevelop 600 stations across the country, out of which 50 will be taken up in phase-1.
Image Credit: RITES