RITES Subsidiary mandated for management of 3 GW solar plants installation on Railway Land

RITES Limited's (NSE: RITES, BSE: 541556) subsidiary Railway Energy Management Company Ltd. (REMCL) has secured its largest mandate from Indian Railways for handling tendering, installation supervision and managing power supply from 3 GW solar power plants to be set-up on vacant Indian Railway Land. The project will be divided into 3 phases of 1 GW each. First and third phase of 1 GW each will be on PPP basis under Design, Build, Finance, Operate and Transfer model. Second phase of the project (1 GW) will be on ownership model of REMCL, which will be eligible for capital subsidy under CPSE investment scheme. The Railways have already identified suitable land to be leased to REMCL on nominal lease rent.

Commenting on this mandate, Rajeev Mehrotra, Chairman & Managing Director, RITES Ltd and Chairman REMCL, said; "This is the largest mandate received by REMCL for tendering, installation and power management of solar energy. This will strengthen REMCL's position as the green energy solution provider and energy manager to Indian Railways and firmly establish REMCL in green energy sector in India".

Besides Bid management fee in the beginning, REMCL would earn long term revenue through supply management from these installations which may amount to approximately Rs. 20 crore per year to REMCL during life of the project. Entire installation is expected to be completed by 2022-23.

Shares of RITES Ltd was last trading in BSE at Rs.239 as compared to the previous close of Rs. 241.1. The total number of shares traded during the day was 13626 in over 777 trades.

The stock hit an intraday high of Rs. 243.9 and intraday low of 237.1. The net turnover during the day was Rs. 3264041.

Source : Equity Bulls

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