The joint venture, known as Ramakrishna Titagarh Rail Wheels Limited, plans to construct the facility using cutting-edge German technology and machinery.
This expansion aligns with the Indian central government’s goal of achieving self-sufficiency in train wheel production under the “Atmanirbhar Bharat” initiative, as well as enhancing export capabilities.
A partnership between Titagarh Wagons and Ramkrishna Forgings is currently searching for a cost-efficient site to establish one of the largest train wheel manufacturing plants in Asia.
The joint venture, known as Ramkrishna Titagarh Rail Wheels Limited, plans to construct the facility using cutting-edge German technology and machinery, reports Economic Times.
“We will build a two-lakh-wheel per annum capacity plant, which will be the largest train wheel plant in Asia, if not the world, outside China,” said Umesh Chowdhary, Titagarh Wagons vice-chairman and managing director.
He estimated the plant’s capex at Rs 1,000 crore.
A study is being conducted to determine the most cost-effective location for the project. The railways will be consulted before a final decision is made.
According to him, incentives, convenient access to raw materials, and affordable transportation of finished products are vital in determining the location.
The consortium has successfully secured the tender with a competitive bid of Rs 12,226 crore.
This achievement aligns with the Indian central government’s goal of achieving self-sufficiency in train wheel production under the “Atmanirbhar Bharat” initiative, as well as enhancing export capabilities.
In support of Indian manufacturing, railway authorities have committed to purchasing 80,000 wheels annually for a period of 20 years.
“India used to import train wheels worth around Rs 500 crore per annum. Once the plant comes up, we plan to export 30-35 per cent of our annual manufactured wheels in the international market, after meeting domestic demand,” Chowdhary said.
The proposed factory would be allowed to export forged wheels to Europe and other countries, after supplying its products to the railways, the official said.
Chowdhary mentioned that when the consortium’s wheel plant achieves full capacity, revenue will be Rs 1,500-2,000 crore per year.
Titagarh Wagons and Ramakrishna Forgings Company are both based in West Bengal. At present, these two companies are engaged in the production of coaches and wheels for the Vande Bharat in West Bengal.
Following earlier reports, the companies approached the Yamuna Expressway Industrial Development Authority (YEIDA) in April with a request for the allocation of 100 acres of land in Gautam Buddha Nagar.
The purpose of this land allocation request is to establish a manufacturing facility for the production of coaches intended for the Vande Bharat trains.
In a bid to expand its operations, they proposed to invest a total of Rs 25,000 crore in this project, with an initial investment of Rs 7,000 crore earmarked for the first phase.