RITES Ltd, the Railways PSU, has started feasibility studies along the India – Middle East segment, a part of the proposed larger IMEEC (India – Middle East – Europe Corridor).
The Navratna company has set-up an ‘IMEEC Cell’ and is already “working with stakeholders” to “provide ease-of-doing-business”, RITES CMD, Rahul Mithal said.
According to him, work is “moving fast” and over the last few months the segment has been grated “high priority”.
RITES is already expanding the team of its IMEEC Cell to include domain experts, IT specialists, consultants, international trade specialists, among others.
“We are working with the stakeholders.....the IMEEC team is being expanded to include domain experts with the focus being on providing ease of doing business and smoother transition of cargo between the two countries,” he told businessline.
RITES signed am MoU with Abu Dhabi Ports Group, the developer and regulator of ports and related infrastructure in Abu Dhabi, in February. The two are analysing the feasibility of development of missing links across the existing rail corridor that passes through the UAE, Saudi Arabia, Jordan and Israel.
Connecting India’s ports on the West Coast to the Dedicated Freight Corridor is being explored and infrastructure gaps are being identified.
Some of the areas where studies are being carried out include simplification of customs procedures, integration of IT systems, logistics connectivity, support systems, and so on.
“Several variables are being explored, so as to come up with a solution,” Mithal said. The IMEEC, a proposed 4,800 km long route comprising ship-to-rail networks, and road transport routes was announced in September 2023 in New Delhi on the sidelines of G20.
Strategically, the IMEEC is viewed as a counter to China’s intercontinental Belt and Road Initiative.
Tapping other International Markets
According to Mithal, RITES is also tapping international markets in the Middle East, Africa and in India’s neighbourhood – Nepal, Bangladesh and Sri Lanka – for consultancy orders across segments like rail, airport, highways, among others.
It will also tap Asian naitons, Africa and LatAm for rolling stock orders (locomotives, wagon and coach). Bids have been placed in several of these markets.
Export of coaches to Bangladesh – order valued at ₹900 crore for 200 coaches – and for Mozambique – valued at ₹300 crore for 10 locomotives - are expected to begin in Q1FY25.
“Prototypes are being prepared. We are in discussions with both these countries to speed up on the approvals. Bangladesh has 10 coach prototypes. So latest by Q1FY25 exports to both these markets are expected to start,” he said.
In case of Zimbabwe, exports will be explored once the African nation finalises its funding lines.
- Also read: RITES Q4 net profit down at ₹123 cr
For Q1FY25 (April - June), moderating exports and decline in domestic consultancy businesses, saw RITES report a 24.4 per cent decline in its net profit to ₹90.4 crore. Net profit in the year-ago-period was ₹119.6 crore. Top-line dropped to ₹486 crore. Margins narrowed by 800 basis points to 21.8 per cent.
“We have seen a sequential increase in order book by 11 per cent to ₹6350 crore. It was at ₹5700 crore for FY24-end. We are looking to up the ante on consultancy orders – in India and abroad,” he said.