Railways Sign Rs 2,500 Crore Agreement For Stainless Steel Freight Wagons

Indian Railways on Tuesday (24 November) signed an initial pact with rolling stock manufacturer SAIL-RITES Bengal Wagon Industry Ltd (SRBWI) for procurement of high-class stainless steel freight wagons at a cost of Rs 2,500 crore over 10 years.

Railways Minister Suresh Prabhu and Minister of Steel Narendra Singh Tomar signed the agreement.

The new industry will pave the way of commencement of the production of stainless steel wagons and it will also contribute to the economic development of the region and lead to employment generation and creation of ancillary industries.

Prabhu said that this agreement is a very significant for both Ministry of Railways and Ministry of Steel.

He hoped that the factory will manufacture most modern wagons which are required for expansion of Indian Railways and the factory will emerge as a Centre of Excellence for development and manufacture of special purpose wagons for domestic and international market.

Prabhu said that the steel is a very important component for the development of economy and increased consumption of steel spurs demand for iron ore which in turn helps Railways as it gets more freight to transport.

He said that Indian Railway should also consider other options like using aluminium for manufacturing wagons.

Narender Singh Tomar said that RAIL and SAIL are both very important pillars of country’s economy. The partnership between the two will be very useful for the nation and it will benefit both.

This factory is ready and the production will commence very soon. This joint venture project was announced in 2010-11 and between two major PSUs namely, SAIL and RITES. The land for the factory has been provided by SAIL and has been constructed at an approximate cost of Rs 120 crore.

This manufacturing unit will produce 1200 wagons per annum and rehabilitation of 300 wagons per annum for a period of 10 years.

This factory is likely to generate employment for about five hundred people and will provide skill development opportunities for local people. Secondary and tertiary opportunities also become available which will lead to economic growth and all round development of the area.