RITES pushes in-service diesel locomotives on export fast-track

With Indian Railways nearly fully electrified, RITES is pushing exports of in-service diesel locomotives-mainly to African nations

With Indian Railways nearing full electrification and pursuing an aggressive net-zero emissions plan, state-owned engineering and infrastructure consultancy RITES is eyeing several African countries to grow exports of in-service diesel locomotives, a senior company executive said.

 

“It is a win-win situation. Many of these diesel locomotives have 15 years or more of codal life left, and there is strong interest in Africa to procure such locomotives, as they are also cost-effective,” Rahul Mithal, chairman and managing director, told Business Standard in an interview.

 

Currently, the company has around 30 diesel locomotive orders on the Cape gauge, a track-width system used predominantly in African nations. The consultancy has refurbished two such locomotives so far, converting them from broad gauge to cape gauge, which will be put into service after trials.

 

“Once they are successfully run there, we will start executing the remaining orders. There are 11–12 countries that operate on Cape gauge,” Mithal added.

 

Indian Railways has a large fleet of diesel locomotives, and RITES has already created an age-wise portfolio of these assets. The company sees a lucrative opportunity in this segment, as most export orders offer double-digit margins for the consultancy.

 

According to the latest data, electrification of the national transporter is over 99 per cent complete. While Indian Railways plans to retain some diesel locomotives for strategic purposes, most of its fleet will be electrified in pursuit of its target to become a net-zero carbon emitter by 2030.

 

This initiative is also part of a broader push to scale up international business, as India seeks a larger share of global railway and infrastructure supply chains.

 

“We will continue improving our bottom line and exploring other opportunities, including our international business — RITES Videsh. Today, it has the highest order book in our history, at about ₹2,150 crore,” Mithal said.

 

The company is also hiring more people and has pushed for a major global expansion project.

 

Mithal said RITES has placed senior executives across five geographies to head regional operations — Manila for Southeast Asia, Abu Dhabi for West Asia, Guyana for Latin America (LatAm), Johannesburg for eastern and southern Africa, and Ghana for central and western Africa.

 

The consultancy is also looking to ensure timely delivery for its order of 200 coaches for Bangladesh, where coordination challenges during the peak of unrest in the country delayed initial timelines by five to six months.

 

RITES is also working closely with Integral Coach Factory in Chennai on the Vande Bharat export project, which has seen limited progress despite the plan being announced more than two years ago.

 

For exports, Vande Bharat trains need to be converted from Indian broad gauge to standard gauge, which is prevalent in the Americas and Europe. “LatAm and some countries in Africa, in particular, offer strong export potential. Now that we have a better sense of the interest, the project has picked up pace,” Mithal said.

 

The company plans to pitch for orders in global markets soon.