New Delhi: RITES Limited, a public sector undertaking under the Ministry of Railways, has emerged as the lowest bidder (L-1) in a tender floated by Sri Lanka Railways for the supply of broad gauge Diesel Multiple Unit (DMU) train sets.
The estimated value of the bid is approximately Rs 400 crore (USD 41.45 million).
In a regulatory filing dated November 2, RITES informed the stock exchanges that the tender relates to the supply of broad gauge DMU train sets for Sri Lanka Railways. However, the bid is subject to scrutiny and evaluation by Sri Lanka Railways in accordance with the requirements specified in the tender documents.
According to the company, the proposed execution period for the contract is 12 months from the opening of the Letter of Credit (LC).
The contract has been classified as an international order, with Sri Lanka Railways being the awarding entity. RITES also clarified that the proposed contract does not fall under related-party transactions and that neither the promoter nor the promoter group or group companies have any interest in the awarding entity.
The development marks another international business opportunity for RITES in the railway rolling stock segment, subject to completion of the tender evaluation process and further award formalities.
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