SAIL signs JV with RITES Ltd
New Delhi: Steel Authority of India Limited (SAIL) signed a joint venture with RITES Ltd. for setting up a Wagon Manufacturing Unit at Kulti, Bardhman district in West Bengal, with a capacity to handle 1500 wagons per annum, at Udyog Bhavan today. The agreement was signed by SAIL Director (Finance), Mr Soiles Bhattacharya and RITES Managing Director, Mr V.K. Agarwal in august presence of Union Minister of Steel, Shri Virbhadra Singh, Chairman Railway Board, Mr Vivek Sahai, Secretary Steel, Mr P.K. Misra, SAIL Chairman Mr C.S. Verma, Chairman RITES and Member (Mechanical), Railway Board, Mr Sanjiv Handa and other senior officials of Steel Ministry, RITES, Railway Board and SAIL.
Complimenting both the organisations for this initiative, Shri Virbhadra Singh expressed confidence that this relationship will grow from strength to strength leading to other such ventures. Addressing the gathering, Mr P.K. Mishra added, “The JV is testimony to strong and long lasting bond between the two organisations. This mutually beneficial relation must be nurtured, deepened and strengthened”. Underlining the importance of this JV for SAIL, Mr C.S. Verma said, “The signing of JV marks a red letter day in the relationship between SAIL and Indian Railways; and is a milestone in its history”.
Enthused about the JV, Mr Vivek Sahai stated that the synergy would facilitate national growth with several new Railway projects requiring steel on the anvil. Mr Sanjiv Handa congratulated both the organisations for a smooth and speedy transition of the proposal from conceptualization to signing and remarked that it would set new benchmarks in the years to come.
Earlier, following a Government proposal during Budget 2010 to set up Wagon Manufacturing Factories in Public-Private Partnerships, an MoU was signed between SAIL and RITES Ltd in May ’10, and a feasibility study was conducted thereafter. With the project cost estimated at Rs. 85 crores, the unit will be erected in the premises of SAIL Growth Works Division at Kulti. The state-of-the-art Plant will be equipped for manufacture of 1200 wagons and rehabilitation of 300 wagons per year in the initial stage. Besides manufacture of BOXN type wagons, the Plant will also be able to produce specialized high-end wagons and modern stainless steel wagons with marginal investment in Plant and Machinery.
The Plant will be professionally run by a Joint Venture Company (JVC) which will look after its regular functioning and operations. While steel from SAIL will be supplied to the JVC at prevalent market rates, the JVC will procure other items at market determined prices through tenders. It is envisaged that the Plant will be erected and commissioned within 14 months from the date of formation of the JVC.
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