Titagarh Wagons-Ramkrishna Forgings to form SPV for Rs 1,000cr train wheel manufacturing plant
A consortium of Titagarh Wagons and Ramkrishna Forgings will form a special purpose vehicle (SPV) for manufacturing of train wheels, an official said on Wednesday.
A greenfield plant for making train wheels will come up at a cost of Rs 1,000 crore, he said. The development comes after the consortium emerged as the lowest bidder for the Railways’ tender.
The Railways had floated the tender and invited bids for setting up a wheels manufacturing plant in the country with assured annual offtake of 80,000 wheels for next 20 years to reduce its dependence on imports.
The consortium put in an aggressive bid of Rs 12,226 crore, leaving the contenders behind by a wide margin, the official said. ”Our consortium has emerged as the lowest bidder for the tender of wheels. This project will go a long way in making India self-reliant with train wheels, which are mostly imported. After receiving the LOA for the contract, the partners will work out the finer details of the project,” Titagarh Wagons vice-chairman and managing director, Umesh Chowdhary, said.
Following the receipt of the Letter of Award (LOA) for the contract, the SPV formation process will begin. The location of the project will be determined after discussions with Ramkrishna Forgings and will depend on various factors such as proximity to the port, market, raw materials, and other project-related aspects.
According to industry sources, the shareholding pattern between Titagarh Wagons and Ramkrishna Forgings will be equal. Both companies are listed entities and will need clearance from their board members, officials…