Cabinet approves equity investment by rites in Tanzania

New Delhi, June 16 (UNI) The Union Cabinet at its meeting held here today has approved the equity investment by RITES Ltd of a sum not exceeding 8 million dollars.

Briefing newsmen, the Defence Minister Pranab Mukerjee said this investment representing RITES equity participation of 51 per cent in the strategic shareholding company for execution of Tanzania Railway Corporation (TRC) concession project involvers rehabilitation of Railway and its operation and management for a period of twenty five years.

He said the cabinet decision would benefit RITES in securing the TRC concession, which is likely to have equity IRR of 43 per cent.

Apart from return of equity, management of construction contracts, opportunity of leasing rolling stock and securing technical services contracts for this project and for operation and maintenance are likely to accrue to RITES, Mr Mukerjee added.

UNI/BKS DKS RK1504