|23 NOV 2009
||Jindal Rail to invest Rs 2700 cr in wagon facility
Jindal Rail Infrastructure
Ltd, a 100 per cent subsidiary of Jindal ITF, the infrastructure arm of
Jindal SAW Ltd, is likely to finalise a technical tie-up with a Japanese
company for manufacturing of electric multiple unit (EMU) coaches at
its upcoming wagon making facility at Karjan near here.
Indresh Batra, managing director, Jindal SAW Ltd and vice-chairman
Jindal ITF, part of the $12 billion O P Jindal Group, said: “We are all
set to sign an agreement with the Japanese player by the end of this
year and can look forward to manufacturing EMU coaches from 2011.” While
he declined to share further details, he claimed the new venture is
likely to financially break even by 2011.
The company today announced an investment of Rs 2,700 crore over the
next three to five years on the 116-acre Karjan facility, that will
produce 3,000 stainless steel wagons yearly in the first phase. The
first phase investment would be Rs 157 crore, of which 30 per cent would
be equity contribution. The facility would manufacture open-type
freight wagons for coal and iron ore traffic, as well as covered wagons
for cement and foodgrains and container wagons.
Manufacture of a prototype wagon and its approval by the Research
Designs and Standards Organisation is expected by January 2011 and
series manufacture of wagons can start from February onwards. The
electric and diesel multiple units would be manufactured in the second
phase. On completion, the project would employ around 4,500 people and
nearly 1,500 would be employed in the first phase. Batra said all fresh
procurement by the Indian Railways would be of stainless steel wagons
and their demand is estimated at 20,000 wagons per year. Nearly 75 per
cent of the the net production from the facility would go to the
Railways, while the rest would be for private players.