Ramkrishna-Titagarh consortium scouting for sites for train wheel plant
An official said on Sunday that a consortium of Titagarh Wagons and Ramkrishna Forgings is in the process of locating a cost-effective site to set up one of the largest rolling stock manufacturing plants in Asia.
He said the Special Purpose Vehicle (SPV) – Ramkrishna Titagarh Rail Wheels Limited – will build the facility with the latest German technology and machinery.
“We will build a 2 lakh-wheel-capacity plant per annum, which will be the largest rail-wheel manufacturer in Asia, if not the world, outside of China,” Umesh Chaudhary, Vice Chairman and Managing Director of Titagarh Wagons told PTI.
He said the plant’s capital expenditure is estimated at Rs. 1,000 crore.
We are not done with the location yet, a study is underway to determine the best cost effective location. The decision will be made after consultation with the railways.”
He said the critical factors for finishing the site would be incentives, easy access to source raw materials, and cost-effective transportation of finished goods.
The consortium won the respective tender with an aggressive bid of Rs.12,226 crore.
The railway authorities assured her of an annual production of 80,000 wheels over the next 20 years to support India’s industrialization.
The central government has decided to not only stop importing railway wheels as part of the Atmanirbar Bharat (Self-Reliant India) initiative but also to build export capacity.
The official said the proposed factory would be allowed to export forged wheels to Europe and other countries after supplying its products to the railways.
“India used to import train wheels worth around Rs 500 crore annually. Once the plant is established, we plan to export 30-35 per cent of our annual wheels manufactured in the international market, after meeting the domestic demand,” Chaudhary said.
“We have three years from the signing of the agreement, which will happen any day, to start supplying 80,000 wheels annually for the railways. This is the right time to build the plant and test facilities,” the official said.
Chowdhury said that once the consortium’s wheel plant is fully operational, annual revenue will be in the range of Rs 1,500 to 2,000 crore.
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