Coal miner ICVL Mozambique and RITES Ltd (Rail India Technical and Economic Service) have signed a $20.6mn agreement for the latter to supply locomotives to the former, according to Business Upturn on January 27.
RITES, which is owned by the Indian government, will supply new Cape Gauge Diesel Electric Locomotives along with preventive maintenance services to ICVL, the publication wrote.
'The scope of the contract includes the supply of new Cape Gauge Diesel Electric Locomotives with a provision for preventive maintenance services and consumable spares at site,' it observed. 'The order has been awarded by an international entity, further expanding RITES’ footprint in overseas railway infrastructure and rolling stock projects.'
Under the phased execution of the contract, RITES is bound to deliver the order within 15 months, followed by 24 months of maintenance services, ensuring sustained operational engagement over the medium term.
Noting that the $20.6mn order was significant, RITES explained that “neither the promoter nor the promoter group has any interest in the awarding entity, and the contract does not qualify as a related party transaction, confirming that it has been entered into on an arm’s length basis,” per Business Upturn.
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