The Hindu Business Line : Autokast likely to make light-weight rly wagons

Talks between the Kerala Government and the Indian Railways on floating a joint venture between the latter and the State-owned Autokast Ltd for manufacture of light-weight wagons are at an advanced stage.

The Railways has expressed interest in joining hands with Autokast as the manufacturing line for the new light-weight wagons could be set up in an existing facility within one year as against at least three years for a greenfield project.

According to officials in the Industries Department, the Railways is expected to float a global tender to acquire the technology for the new type of wagons. Even otherwise, the Railways is facing severe shortage of wagons and the situation is expected to turn more demanding with the implementation of the proposed `freight corridors' in the Eleventh Plan. The Railways plans to assign the manufacture of the wagons to four entities, including three private companies. The fourth unit is sought to be established by the Railways itself or by a company sponsored by it and the joint venture with Autokast comes in here.

Autokast is engaged in the production of steel castings and supplies them to clients such as Bharat Heavy Electricals Ltd, Steel Authority of India Ltd and National Thermal Power Corporation. Currently , the company is utilising only 40 per cent of its annual installed capacity of 9,000 tonnes.

The officials said that the joint venture could be set up in 54 acres of land owned by Autokast and the adjoining 26 acres occupied by the fabrication facility of Steel Industrials Kerala Ltd, another State-owned company. Apart from the excellent existing infrastructure, the location also offers surplus power capacity.

A team from the Railways had visited Autokast last month and also held discussions with the Chief Minister and the Industries Minister on the possibility of establishing the joint venture. The Railways will rope in an agency, probably RITES, to prepare a detailed project report.

The State Government will be `more flexible' in the matter of equity participation by the Railways in the joint venture, the officials said.

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