Rlys to take PPP route for new unit

NEW DELHI: The Indian Railways plans to set up a wagon factory on public-private-partnership (PPP) model. It has already identified the site at Dalmia Nagar in Bihar. The complex will manufacture high axle load bogies and wagons.

Rail Bhawan is in the process of creating a dedicated rolling stock SPV, where private players would buy stakes. The new wagon factory at Dalmia Nagar would manufacture 32.5-tonne axle load goods trains and double stack container trains, which would be intensely used by the dedicated rail freight corridor. Currently, only wagons of 22.9-tonne axle load are being manufactured in the country. “To have the best possible technology at our disposal, we are considering involving private players in the job,” a Rail Bhawan official said.

The dedicated rail corridor is set to be constructed on PPP basis on an estimated cost of Rs 30,000 crore. For the first time, private players will be involved in manufacturing trains with their own designs. Also, the designs will be in accordance with special commodity wagons — iron ore, steel and coal etc.

The companies manufacturing wagons for the railways are BEML, Bhel and Wagon India ( WIL). With double stack container movement and high axle load trains, the throughput will increases by 70%. “The wagon manufactures would be allowed to manufacture wagons of their own designs, with railways-recommended bogies, coupler, draft and brake gear.

The guidelines would soon be announced,” the official said. To encourage the development of such new technology, the railways would also extend a freight discount so that benefits of new technology are shared between the railways and the investors.