Indian consultancy pushes railway leasing in Africa

RITES, the Indian consultancy firm may
push into the railway equipment leasing business as part of
international growth plans. Its Indian Railways subsidiary wants to
capitalise on its railway projects in Africa by utilising
leasing.
V K Agarwal, managing director of RITES said, “Leasing is a big
market in Africa, as the mineral-rich continent requires
development of railway infrastructure for the movement of minerals.
And it is here that we see an opportunity.”
RITES is currently operating a railway system under a 25-year
concession agreement in Mozambique, where it lead a consortium in
building 800km of railway line for a cost of $200m, as well as
developing a 2,700km line in Tanzania.

Mehorta says that leasing low-cost locomotives, wagons and
coaches, would prevent raising further debt in Tanzania or
Mozambique concession projects.

RITES will provide an initial public offering (IPO) in June and
already has an investment of Rs350 crore (£43m), half of which will
be dedicated to leasing.
“We plan to utilise Rs 194 crore (£24m) as a capital investment for
procuring railway equipment for leasing, as the concessions outside
are owned by us,” Mehrotra said.