National transporter, Indian Railways (IR) is exploring various options of collaborations and joint ventures for the production of steel products required for railway equipment and rolling stock manufacturing, government sources said on Friday, June 30.
The sources said that IR is drawing up a list of various grades of steel and steel products requirements in railway equipment manufacturing and holding talks with relevant industry stakeholders to zero in where production of such products could be started jointly with minimum guaranteed offtake by the national transporter.
According to the sources, the initiative is aimed to frame a formal model to the already announced collaboration between Steel Authority of India Limited (SAIL) and IR for the production of corrosion-free steel.
Another segment being explored is joint production of stainless steel which has been adopted as ‘preferred material’ over aluminium in the manufacture of rolling stocks for IR’s newly introduced semi-high speed passenger trains, the sources said.
It was pointed out that while aluminum extruded components required for rolling stock needed to be imported, there was sufficient technology and manufacturing capacity in the country for making the same components from stainless steel through collaboration of IR and domestic stainless steel mills.
The sources added that any collaborative proposal could include the financial contribution in equities in joint ventures, allocation of vast surplus land available with IR across the country, and joint research and development between Railway Design and Standards Organization (RDSO) under IR and private steel producers.