The Hindu Business Line : Rlys to set up rolling stock units through jt ventures

Indian Railways plans to set up rolling stock units in partnership with international companies. It is likely to have a 26 per cent ownership in the joint venture.

Railways has decided in-principle to set up the proposed coach, loco and wheel factories by inviting joint venture partners through a global competitive bidding, Mr J.P. Batra, Chairman, Railway Board, said on the sidelines of a seminar on `Building Infrastructure: Challenges and Opportunities'.

This would ensure availability of the latest rolling stock manufacturing technology, apart from helping meet its rolling stock requirements.

With this, India may also emerge as a production base for exports.

Railways has a demand for 4,500 coaches per year, whereas the present production capacity in the country is about 2,500. Similarly, the annual loco production capacity is 300 against an expected annual demand of 750 locos. As for wheels, the annual production capacity is about 2 lakh compared to a demand of 2.4 lakh wagon wheels in this fiscal itself.

Railways plans to set up a coach factory in Rae Bareilly, Uttar Pradesh, and a diesel loco factory in Saran, Bihar with an investment of Rs 1,000 crore in each unit. It is also setting up a wheel manufacturing plant in Chhapra, Bihar. It also plans setting up an electric loco manufacturing unit.

Apart from resorting to import of wheels to meet its captive demand, Railways had imported 6,000 horsepower ABB locos, 4,000 horsepower diesel locos from General Motors, and LHB coaches. It had technology transfer agreements to start low cost production.

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