9SEPTEMBER 2025TITAGARH RAIL EYES GROWTH WITH MRVC'S RS 21K CR VANDE METRO DEALIndia has reduced the exhaustion period for local remedies available to Israeli investors to three years from the previous five years in the Bilateral Investment Agreement (BIA) signed on Monday between the two countries.India has included a similar provision in its investment agreement with the UAE that came into force last year. The Bilateral Investment Agreement (BIA) between India and Israel aims to give comfort to investors in both Titagarh Rail Systems Ltd. is making waves in the stock market after the Mumbai Railway Vikas Corporation (MRVC) announced a massive 21,000 crore tender for 2,856 air-conditioned coaches as part of the Vande Metro project.Brokerage firm Nuvama Institutional Equities has reaffirmed its `Buy' recommendation for Titagarh, highlighting the company's strong potential to win a significant portion of this game-changing contract, which falls under the Mumbai Urban Transport Project (MUTP) phases III and III-A.The tender involves supplying 238 air-conditioned jurisdictions and includes portfolio investments, which is a divergence from the past in such treaties.Local remedies exhaustion means that jurisdictionally, investors must first try to resolve their disputes by the legal systems of the host country before they can avail themselves of international arbitration. Typically, India has a five-year period for that.Israel is the inaugural member of the OECD (Organisation for Economic Co-operation and Development) with which India has formalized this agreement.The agreement encompasses clauses designed to protect investments from expropriation, promote transparency, and facilitate seamless transfers and compensation for losses, as stated by the finance ministry. Simultaneously, it meticulously balances the protection of investors with the regulatory rights of the state, ensuring adequate policy space for sovereign governance."The agreement is expected to boost investments and provide greater certainty and protection for investors, facilitating the growth of trade and mutual investments by ensuring a minimum standard of treatment and an independent dispute resolution mechanism through arbitration," it said. local trains--47 for MUTP-III and 191 for MUTP-3A--along with 35 years of maintenance and the construction of two new depots. This project is a key part of India's `Make in India' initiative, requiring all manufacturing to be done locally.With only three private companies in India--Titagarh Rail, Alstom, and BEML--equipped with the necessary facilities, Titagarh is well-positioned to secure a major share of the deal, according to Nuvama analysts.Titagarh Rail, a leading name in India's railway sector, manufactures passenger coaches, freight wagons, and metro systems. Despite a tough year with its stock dropping 38.5%, it has shown signs of recovery, rising 5.3% in the past month and 19.3% over six months. On August 29, 2025, the stock closed at 825.15, down 1.82% for the day, with a market cap of 11,112.61 crore.The MRVC tender comes at a critical time, as railway coach production has been slow for nearly two years. However, recent metro rail contracts across India signal a revival, and this massive project could keep demand strong for years, even if the contract is shared among competitors. Looking ahead, opportunities in Vande Bharat trains and other metro projects could further fuel Titagarh's growth.Investors are excited about Titagarh's prospects, confident that its expertise and strategic position will help it capitalize on this landmark tender, potentially boosting its stock in the coming months. INDIA & ISRAEL INVESTMENT PACT EASES LOCAL REMEDIES TIMELINE
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