SAIL signs JV agreement with BSCL
26 May 2012 1:15 AM GMT
Steel Authority of India Limited (SAIL) on Friday signed a joint venture (JV) agreement with Burn Standard Company Limited (BSCL) at Kolkata for setting up a wagon components manufacturing facility in West Bengal, with a capacity to produce 10,000 bogies and 10,000 couplers per annum.
The estimated capital outlay for the project is about Rs 200 crore. The agreement was signed in the presence of West Bengal chief minister Mamata Banerjee, union minister for railways Mukul Roy, West Bengal minister for industries and commerce Partho Chatterjee, SAIL chairman C S Verma, railway board member (mechanical) Keshav Chandra and other senior officials of the West Bengal government, railway board and SAIL.
Speaking on the occasion, Mamata Banerjee said, ‘The facility would lead to overall development of the region and I urge the officials to complete it by 2013 and not 2014 as planned. I had announced the project in my 2010 budget speech and Railways have assured annual offtake for 5,000 units. It is praiseworthy that SAIL is investing Rs 21,000 crore in Durgapur and Burnpur. Both these SAIL plants are playing a yeoman’s role in transformation of West Bengal.’
SAIL chairman C S Verma stated, ‘Indian Railways and SAIL have a longstanding association. The Indian Railways has been providing the critical service of transporting practically all of SAIL’s raw material and finished products. Several SAIL plants together produce a wide variety of steel products used by the railways, including rails, wheels and axles, material for coach manufacturing, etc.’
He said further that, ‘SAIL is on the lookout for new markets/segments, where we can refocus our opportunities to supply more value-added steel. Railways, which require stainless steel and other special grade steel items for manufacturing of various types of passenger coaches and goods wagons, as well as the cast steel frames for these coaches, will be one such potential segment for SAIL.’
As per the Vision 2020 document of the Railways, the demand for wagons from railways and other wagon users will go up sharply, thus pushing the demand for wagons and in turn for bogies and couplers in turn.
The estimated capital outlay for the project is about Rs 200 crore. The agreement was signed in the presence of West Bengal chief minister Mamata Banerjee, union minister for railways Mukul Roy, West Bengal minister for industries and commerce Partho Chatterjee, SAIL chairman C S Verma, railway board member (mechanical) Keshav Chandra and other senior officials of the West Bengal government, railway board and SAIL.
Speaking on the occasion, Mamata Banerjee said, ‘The facility would lead to overall development of the region and I urge the officials to complete it by 2013 and not 2014 as planned. I had announced the project in my 2010 budget speech and Railways have assured annual offtake for 5,000 units. It is praiseworthy that SAIL is investing Rs 21,000 crore in Durgapur and Burnpur. Both these SAIL plants are playing a yeoman’s role in transformation of West Bengal.’
SAIL chairman C S Verma stated, ‘Indian Railways and SAIL have a longstanding association. The Indian Railways has been providing the critical service of transporting practically all of SAIL’s raw material and finished products. Several SAIL plants together produce a wide variety of steel products used by the railways, including rails, wheels and axles, material for coach manufacturing, etc.’
He said further that, ‘SAIL is on the lookout for new markets/segments, where we can refocus our opportunities to supply more value-added steel. Railways, which require stainless steel and other special grade steel items for manufacturing of various types of passenger coaches and goods wagons, as well as the cast steel frames for these coaches, will be one such potential segment for SAIL.’
As per the Vision 2020 document of the Railways, the demand for wagons from railways and other wagon users will go up sharply, thus pushing the demand for wagons and in turn for bogies and couplers in turn.
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