Indian company RITES Limited announced that it has received a Letter of Intent (LOI) from ICVL Mozambique for the supply of new Cape gauge diesel-electric locomotives, including preventive maintenance services, according to a report on Tuesday, January 27, by the Business Upturn news portal.
According to information disclosed under the Listing and Disclosure Regulations of the Indian Stock Exchange (SEBI), the contract provides for the supply of locomotives, as well as consumable parts and on-site preventive maintenance services.
The project will be carried out in two phases: delivery of the rolling stock is expected to be completed within 15 months, followed by an additional 24-month period dedicated to preventive maintenance, ensuring the operational continuity of the equipment.
The total value of the contract amounts to US$20.6 million, constituting one of RITES’s significant international orders in the railway sector.
The company also clarified that neither the promoters nor the promoting group have any interest in the contracting authority, emphasizing that the contract does not constitute a transaction between related parties and was concluded under market conditions.
The award strengthens RITES’ presence in international railway projects, particularly in the supply of infrastructure and rolling stock to African markets.
