Kolkata: The Railways is poised to sign a joint venture agreement in April 2012 for setting up a wagon component manufacturing facility at Jellingham, East Midnapore with work on the over Rs 200-crore project likely to commence from September 2012.
The production of bogies and couplers from the new facility is expected to take place from March 2014. Keshav Chandra, Member Mechanical, Railway Board and A K Verma, General Manager, South Eastern Railway visited the site at Jellingham on Sunday. Other senior officials of Burn Standard Ltd SAIL and WBIDC were also present.
The project was sanctioned to set up a steel foundry for manufacturing of wagon bogies and wagon couplers at Jellingham where Burn Standard Ltd has 128 acres on lease from Kolkata Port Trust. The steel foundry will be set up on 35 acre.
The feasibility study for the project has already been conducted by RITES and report was submitted in September 2011. The feasibility report was approved by Burn Standard Ltd in September 2011 and by SAIL in March 2012. The project cost is estimated at Rs.201.66 crore.
The project will be financed on a 70:30 debt and equity ratio by a joint venture company between Burn Standard Ltd. and SAIL which will have equal participation from the two partners.
While the joint venture agreement will be registered in April 2012, the jv will subsequently float tenders for construction of foundry. The plant will be set up for manufacturing 10000 wagon couplers and 10000 bogies per year and the Railways has agreed to an assured off-take of 5000 couplers and 5000 bogies per annum.
No comments:
Post a Comment