Indian steel giant Steel Authority of India Limited (SAIL) has signed a joint venture (JV) agreement with Indian state-owned engineering company RITES Ltd. for the establishment of a railway carriage manufacturing plant at Kulti, Bardhman district, West Bengal.
According to the agreement signed by SAIL finance director Soiles Bhattacharya and RITES managing director V.K. Agarwal in Udyog Bhavan, New Delhi on September 14, the project cost estimated at INR 850 million and will be erected in the premises of SAIL Growth Works Division at Kulti.
The plant will be equipped for the manufacture of 1200 railway carriages and the rehabilitation of 300 carriages per year in the initial stage. Besides the manufacture of BOXN-type carriages, the plant will also be able to produce specialized high-end carriages and modern stainless steel carriages with marginal investment in plant and machinery.
The operations will be run by a JV company and steel from SAIL will be supplied to the JV company at prevalent market rates. The JV company will procure other items at market-determined prices through tenders.
It is envisaged that the plant will be erected and commissioned in 14 months.