Railways in pact with SAIL-RITES for procuring wagons

Tribune News Service

New Delhi, November 24

Indian Railways today signed an initial pact with SAIL-RITES Bengal Wagon Industry Ltd for procurement of high class stainless steel freight wagons at a cost of Rs 2,500 crore over 10 years.

After the signing of the MoU, Railway Minister Suresh Prabhu said the agreement was a significant landmark for both Ministry of Railways and Ministry of Steel and hoped that the factory would manufacture most modern wagons which were required for the expansion of Indian Railways and the factory would emerge as a Centre of Excellence for the development and manufacturing of special purpose wagons for domestic and international market.

The joint venture between steel manufacturer SAIL and rail ministry's arm RITES was set up in 2011. The company operates a wagon factory at Kulti in West Bengal from where the wagons will be supplied.

The pact includes a commitment for procuring 1,200 new and 300 refurbished wagons every year over a period of ten years.

The factory at Kulti has been set up at a cost of Rs 120 crore. The assured offtake pact with the Railways also envisages procurement and installation of equipment at the factory by RITES.