The Hindu Business Line : RITES targets Rs 1,000-cr turnover in five years

The company also plans to bid for build, operate, transfer (BOT) projects in the road sector in the country, for which it is in talks with a foreign company for partnership.

For the financial year ended March 31, 2005, RITES recorded a turnover of Rs 240 crore.

The RITES Managing Director, Mr V. K. Agarwal, told Business Line, "As per our growth projections, we hope to achieve a turnover of Rs 1,000 crore by 2010. We aim to reach the target by taking up privatisation and concessioning of railway systems internationally and participating in BOT road projects, among others."

Under the concessioning arrangement, the Government pays a private party certain fee to run an agency (like the railway system or roads) until it regains its financial health. Unlike in privatisation, the ownership of the agency is transferred back to the Government after a specified period (in concessioning).

RITES entered the arena of maintaining, managing and running the rail operations internationally in Mozambique and Colombia.

"We are part of a consortium that is concessioning the railway system in Colombia. In Mozambique as well, a consortium led by RITES won the rail concession agreement to maintain, manage and run the Beira Rail Corridor for 25 years," said Mr Agarwal.

"We would also sign a rail concession agreement in Tanzania over the next few months. We have already qualified in the technical and financial evaluation process," he said adding that RITES had bid in partnership with Gapco (Gulf Africa Petroleum Company).

The firm also plans to bid for the Ethiopian rail concession, which is in the offing.

"The pre-bid consultations are on. Hopefully, we will bid for the project," said Mr Agarwal.

It will also manage a railway line in Nigeria, through a bilateral arrangement between India and Nigeria.

However, the company recently lost a bid in the final round to run the rail network in Kenya and Uganda.

RITES is also looking at rail concessioning possibilities in the domestic sector.

"In response to a proposal from the Indian Railways, we have submitted a bid to maintain and run the Darjeeling Himalayan Railway for five years," he said. Darjeeling Himalayan Railway is a steam railway system in the mountainous region of Darjeeling that has tourism potential.

The firm is also eyeing a larger share of road sector projects in the country.

"We are in talks with a foreign firm to enter into a joint venture and bid for road projects being given out on BOT basis in the country," Mr Agarwal said.

Till date, RITES has not bid for any NHAI (National Highways Authority of India) projects, though it has been engaged in the construction, supervision and maintenance management of roads for the authority and State governments and as independent engineers for the Delhi-Gurgaon Expressway NH-8 (BOT Project).

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