Titagarh Rail Systems Limited announced the successful receipt of a Letter of Intent (LOI) for its first contract under the newly acquired wagon leasing business. The deal, valued at ₹44.41 Crore (including GST), is with Balmer Lawrie & Co. Ltd. The company will provide 2 BFNS 22.9T rakes on a 10-year operating lease basis for use on the Indian Railways network, marking a significant milestone in their expansion strategy.
First Successful Contract in Wagon Leasing Business
Titagarh Rail Systems Limited has formally communicated the receipt of a Letter of Intent (LOI) dated 24th March, 2026, signaling a major achievement in its diversification efforts. This marks the first successful contract secured under the wagon leasing business, following the signing of the wagon leasing license agreement with Indian Railways on 9th February, 2026.
Contract Specifics and Value
The contract was awarded by Balmer Lawrie & Co. Ltd. The primary scope involves the appointment of Titagarh as Lessor for providing 2 BFNS 22.9 rakes. Each rake consists of 43 wagons plus 4% (2 wagons) spare wagons. These rakes are designed to transport HR Coils, Sheets & Plates, adhering to the latest approved RDSO drawings.
The agreement is structured as an operating lease basis on the Indian Railways network and has a substantial tenure of 10 years. The total commercial consideration for this order is valued at ₹44.41 Crores (inclusive of GST). This deal is classified as a Domestic Entity transaction.
Execution Timeline
The expected effective date of the contract is 07.04.2026. Specifically, the contract execution is scheduled to commence 15 days from the date of issue of Letter of Award of Contract or signing of the contract agreement, whichever occurs earlier.
Governance Confirmation
The Company Secretary confirmed that the Promoter/Promoter Group/Group Companies do not hold any interest in the awarding entity. Furthermore, the transaction is confirmed not to fall within the scope of related party transactions, ensuring it is conducted at an “arm’s length” basis.
Source: BSE
