Indian rail stocks surge after govt seeks $4 bln in private funds

Indian Railway Catering and Tourism

02/07/2020 06:41

** Shares of Indian state-run railway suppliers and
consultants surge after the government invites private-sector
investments of about 300 bln rupees ($3.97 billion) to run
passenger trains in the country
    ** Shares of Rail Vikas Nigam  RAIV.NS  and Ircon
International  IRCN.NS , firms involved in construction of
railway projects, jump 7.7% and 4%, respectively
    ** Majority of trains will be made in India and private
entities will be responsible for financing, procuring, operating
and maintaining trains (https://bit.ly/38vuAdX)
    ** Private entities will pay the Indian railways fixed
haulage charges, energy charges based on actual consumption and
a share in gross revenue; concession period for project shall be
35 years
    ** Shares in IRCTC  INIR.NS , railway ticketing, catering
and tourism services provider, rise as much as 7.7%; Engineering
consultant RITES Ltd  RITS.NS  surges as much as 13.3% to hit a
near 4-month high
    ** Private sector firm Timken India  TIMK.NS , which is
involved in repair of rail bearings, rises 6.3%

($1 = 75.5050 Indian rupees)

 (Reporting by Philip George in Bengaluru)
 ((P.George@thomsonreuters.com; +91 8061822657; Reuters
Messaging: p.george@thomsonreuters.net))