The decision was taken in a board meeting, the company said in a statement.
The dividend amounts to Rs 120.15 crore (at the rate of 50 per cent of paid-up capital), the statement said.
The record date for the purpose of payment of dividend is January 11, 2021.
Standalone revenue of the company for the first half of 2020-21 was Rs 852 crore and profit after tax stood at Rs 191 crore, it said.
RITES is a miniratna public sector enterprise and a leading player in the transport consultancy and engineering sector in the country, having diversified services and geographical reach.
RITES is the only export arm of Indian Railways for providing rolling stock overseas (other than Thailand, Malaysia and Indonesia).