COMPANY LAW BOARD ASKS IL&FS TO APPOINT 4 DIRECTORS, INCLUDING CHAIRMAN, ON THE BOARD; CENTRAL GOVERNMENT TO HAVE 2 NOMINEES ON THE MAYTAS BOARD

Press Information Bureau

Government of India

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IL&FS to be the new promoter of Maytas Infra Limited

COMPANY LAW BOARD ASKS IL&FS TO APPOINT 4 DIRECTORS, INCLUDING CHAIRMAN, ON THE BOARD; CENTRAL GOVERNMENT TO HAVE 2 NOMINEES ON THE MAYTAS BOARD

 

New Delhi : August 31, 2009

 

The Company Law Board has allowed the application of Maytas Infra Limited to hand over the Management of the Company to IL&FS. Passing this Order here today, the Principal Bench of the Company Law Board said that IL&FS shall be the new promoter of the company with immediate effect and that it shall appoint four of its nominees, including the Chairman, on the Board of Directors of the company; and will be in control of the management of the affairs of the company. The order further says that on appointment of these four directors, Shri Teja Raju and Shri B. Narsimharao shall submit their resignations as directors and shall thereafter cease to be directors of the company. At the choice of the Central Government, two of the four Company Law Board nominees appointed by the Central Government shall continue as directors for a period of two years, the order states. The Company Law Board has also asked IL&FS, which holds 14.5 % shares in Maytas, to foreclose its rights on the pledged shares of 22.6 % shares and thus to hold 37.1 % shares in the company. Also, IL&FS will have to bring in up to Rs. 55 crore as liquidity support to the company within a period of three months. The order also asks IL&FS to continue to hold a minimum of 26 % shares in the company for a period of not less than two years and to keep management control of the company during that period.

 

Earlier the Board of Directors of Maytas Infra Limited had held a meeting and accepted the offer of IL&FS to step in as the new promoter of the company so as to restore the credibility of the company and to bring in necessary funds. All the major stakeholders in Maytas Infra Limited were also unanimous in changing the exiting promoter. Accordingly, the Board of Directors of the company recommended the change of guard at the Maytas Infra Limited to the Company Law Board, which heard the application and passed the order today itself.

 

KKP/ska/spandey

 

 

 

Press Information Bureau

Government of India

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RITES operational performance reaches new heights

 

New Delhi : August 31, 2009

 

 

RITES Ltd, a Public Sector Undertaking under the Ministry of Railways, has reached new heights of excellence in its operational performance during the year 2008-09. The company has achieved a gross turnover of Rs.672 crore (previous year Rs.661 crore) with a profit after tax of Rs.94 crore, as compared to previous year of Rs.104 crore. The fall in profit is mainly due to impact on implementation of pay commission recommendations and economic melt down. However, the company secured new business of Rs.1097 crore which is the highest ever and was able to recover the long pending outstanding balance amount of Rs.117 crore as a part of settlement of Iraq dues along with interest of Rs.49 crore. The company has paid dividend of Rs.20 crore. In view of continuous growth and excellent financial results in its overall performance, RITES has been rated 'excellent' based on MOU for the year 2008-09 judged by the Department of Public Enterprises.

 

Addressing the 35th Annual General Meeting of the Company, Shri. Praveen Kumar, Chairman (RITES) and the Member Mechanical, Railway Board said that one of the most prominent achievements during the year had been the award of the prestigious project worth US$74 million by the Sri Lankan Transport Ministry as a part of the Southern Railway Line Upgrade project affected by tsunami. This is the largest ever export order which envisages the supply of 15 diesel multiple units (DMU) and train sets for introducing new passenger services on Colombo-Matara line. It also involves the setting up of a new DMU maintenance facilities in Sri Lanka. In addition, RITES has secured a prestigious contract for the supply of meter gauge air-conditioned diesel multiple units to Senegal in an international competitive bidding.

 

RITES has been at the forefront in promoting and showcasing the Indian Railways capability for the manufacture of a wide variety of locomotives and rolling stock over multiple gauges. For the first time, based upon the operating requirements for hauling coal traffic on cape gauge system, a high horse power locomotive on cape gauge was conceptualized, successfully designed, manufactured and exported to Mozambique.

 

RITES successful entry into the business of privatization and concessioning besides its export packages has further enhanced RITES business profile. RITES concessioning project in Mozambique awarded during 2004-05 for operating the Beira rail system for 25 years is progressing satisfactorily. The rehabilitation of 547 kms long stretch will be completed by the end of this year which is a major achievement considering the working conditions. The concessioning company is negotiating tariff for transporting 12-20 million tones per annum of coal traffic which will start flowing from the year 2011 will peak in 2016. Indian companies have acquired coal properties which will increase the long term perspective for RITES business and for other Indian companies using our railway network. RITES has also been reckoned for a major concessioning project in Tanzania. Both these projects are the engines of growth and development in these countries and would enhance business networks.

 

The company secured business in consultancy segment and embarked on new geographical markets and clients in Asia and Middle East. RITES has got actively involved in providing a detailed project report for the development of the railway and port infrastructure for a leading Saudi Cement Company. In Indonesia, the Reliance Energy group has engaged RITES for a study to set up rail and port infrastructure for their coal project. In UAE, RITES is carrying out studies for freight railway and a new railway line of 750 kms connecting all six GCC countries of Gulf and joining up the Middle East rail network.

 

In addition, RITES continued to provide technical consultancy services in all facets of transportation to various overseas clients in Afghanistan, Senegal, Angola, Botswana, Nepal etc. The salient features of domestic business during the year has been the award of prestigious assignments. RITES has been the think tank for transport policy development and it is engaged in the country level 'Total Transportation System Study' on traffic flows and modal costs entrusted by the Planning Commission covering all modes of transport across the country, is in the final stage of completion.

 

RITES is also involved in providing advisory consultancy services for Taj Expressway from Greater Noida to Agra; general consultancy for Bangalore Metro and for Delhi Metro Rail Corporation(DMRC) phase II, Airport Express Link for Delhi; Project Management for laying water transmission line for Kolkata Municipal Corporation; Design and execution of Intelligent Traffic System(ITS) for Delhi Police; development of rail infrastructure for the integrated steel plants namely of SAIL, TATA Steel, Jindal Steel and Super Power Stations of NTPC and DVC and feasibility studies for setting up of Multimodal Logistics Parks.

 

AKS/HK/LK/TR/spandey

 

 

 

 

  

 

 

PIB Kolkata