State-owned engineering and transport consultancy firm RITES Ltd has received an acceptance of its offer from South Africa’s Volantis Asset Finance (Pty) Ltd for the supply and commissioning of diesel-electric locomotives valued at $35.82 million (about ₹307 crore).
The order involves the supply and commissioning of 4,000 HP Cape Gauge diesel-electric locomotives, the company said in a regulatory filing on Monday.
The contract is expected to be executed over a period of 20 months.
RITES said the formal contract agreement will be signed after completion of due diligence by both parties. The order will be added to the company’s order book once the agreement is executed.
The latest export order strengthens RITES’ presence in the African railway market, where the company has executed projects involving rolling stock, locomotives, rail infrastructure and consultancy services across several countries.
Cape Gauge rail networks, which use a narrow track width of 1,067 mm, are widely deployed across southern and eastern Africa, including South Africa, making specialised locomotives a key requirement for freight and passenger rail operations.
The order is expected to further bolster RITES’ international business, with exports remaining an important growth driver alongside its domestic railway and infrastructure consultancy operations.