RITES Ltd, a company of the Indian Railways has taken 24 per cent equity stake in Indian Railway Stations Development Corporation (IRSDC) and has got a representation on the company board.
The enhanced paid-up capital in IRSDC is now held by Rail Land Development Authority (RLDA), Ircon and RITES in the ratio of 50:26:24. RITES' induction has brought IRSDC additional capital of Rs 48 crore.
“The station development programme of Indian Railways will get an additional boost with four strong industry representatives; RLDA, IRCON, RITES and IRSDC joining hands,” an IRSDC statement said.
S K Lohia is the current managing director and chief executive officer of IRSDC. V G Suresh Kumar will be the RITES nominee on the IRSDC board.
“With the induction of RITES in addition to RLDA and Ircon, IRSDC will benefit from RLDA's land development experience, Ircon's construction experience and RITES' consultancy experience. IRSDC is the only organisation that is being managed by a very versatile board consisting of four government nominee directors in all, including two senior officials from the Ministry of Railways, one representative each from the Niti Aayog and the department of economic affairs, who bring the entire PPP experience of government of India, besides nominee directors from promoters,” said Lohia.
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