Steel Authority of India Limited : SAIL signs JV agreement for wagon components manufacturing facility in West Bengal in presence of Chief Minister
05/25/2012| 01:54pm US/Eastern
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Kolkata: Maharatna Steel Authority of India Limited (SAIL)
today signed a joint venture agreement with Burn Standard
Company Limited (BSCL) at Kolkata for setting up a Wagon
Components Manufacturing Facility at the premises of BSCL at
Jellingham, Purba Medinipore district, in West Bengal, with a
capacity to produce 10,000 bogies and 10,000 couplers per
annum. The estimated capital outlay for the project is about
Rs 200 crore. The agreement was signed in the presence of
West Bengal Chief Minister Ms Mamata Banerjee, Union Minister
for Railways Shri Mukul Roy, West Bengal Minister for
Industries & Commerce Shri Partho Chatterjee, SAIL Chairman
Mr C.S. Verma, Railway Board Member (Mechanical) Mr Keshav
Chandra and other senior officials of the West Bengal
government, Railway Board and SAIL.
Speaking on the occasion, Chief Minister Ms Mamata Banerjee
said: ''The facility would lead to overall development of the
region and I urge the officials to complete it by 2013 and
not 2014 as planned. I had announced the project in my 2010
budget speech and Railways have assured annual offtake for
5,000 units. It is praiseworthy that SAIL is investing Rs.
21,000 crore in Durgapur and Burnpur. Both these SAIL plants
are playing a yeoman's role in transformation of West
Bengal. I have complete trust in SAIL's capacity and
capabilities and the company is doing exemplary work for the
state. The symbiotic relation between SAIL and Railways has
the potential to grow further and it should be harnessed
fully.
SAIL Chairman Mr C.S. Verma stated, "Indian Railways and SAIL
have a longstanding association. The Indian Railways has been
providing the critical service of transporting practically
all of SAIL's raw material and finished products. Several
SAIL plants together produce a wide variety of steel products
used by the Railways, including rails, wheels & axles,
material for coach manufacturing, etc. Today's event is a
significant milestone in this journey together and SAIL is
open to more2 such collaborations with the Railways to meet
all the future needs of the nation. He said further that,
"SAIL is on the lookout for new markets/segments, where we
can refocus our opportunities to supply more value-added
steel. Railways, which require stainless steel and other
special grade steel items for manufacturing of various types
of passenger coaches and goods wagons, as well as the cast
steel frames (bogies & couplers) for these coaches, will be
one such potential segment for SAIL."
Mr. Verma expressed gratitude to the West Bengal government
for providing all support for the wagon components
manufacturing project. On the occasion, Mr Keshav Chandra
remarked, "The signing ceremony is a momentous occasion
as the manufacturing facility would meet the requirements of
Railways and industry. This assumes special significance
considering the fact that bogies and couplers are in short
supply."
As per the *Vision 2020* document of the Railways, the demand
for wagons from Indian Railways and other wagon users will go
up sharply, thus pushing the demand for wagons and in turn
for bogies and couplers in turn. The SAIL-BSCL venture will
be able to beat the competition and secure a good share of
the market for the new/ upgraded products.
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