Maharatna Steel Authority of India Limited (SAIL) today signed a joint venture agreement with Burn Standard Company Limited (BSCL) at Kolkata for setting up a Wagon Components Manufacturing Facility at the premises of BSCL at Jellingham, Purba Medinipore district, 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 Ms Mamata Banerjee, Union Minister for Railways Shri Mukul Roy, West Bengal Minister for Industries & Commerce Shri Partho Chatterjee, SAIL Chairman Mr C.S. Verma, Railway Board Member (Mechanical) Mr Keshav Chandra and other senior officials of the West Bengal government, Railway Board and SAIL.
Speaking on the occasion, Chief Minister Ms Mamata Banerjee said: ÔÇÿÔÇÖThe 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. I have complete trust in SAIL's capacity and capabilities and the company is doing exemplary work for the state. The symbiotic relation between SAIL and Railways has the potential to grow further and it should be harnessed fully.
SAIL Chairman Mr C.S. Verma stated, ÔÇ£Indian Railways and SAIL have a longstanding association. The Indian Railways has been providing the critical service of transporting practically all of SAILÔÇÖs raw material and finished products. Several SAIL plants together produce a wide variety of steel products used by the Railways, including rails, wheels & axles, material for coach manufacturing, etc. TodayÔÇÖs event is a significant milestone in this journey together and SAIL is open to more2 such collaborations with the Railways to meet all the future needs of the nation. He said further that, ÔÇ£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 (bogies & couplers) for these coaches, will be one such potential segment for SAIL.ÔÇØ
Mr. Verma expressed gratitude to the West Bengal government for providing all support for the wagon components manufacturing project. On the occasion, Mr Keshav Chandra remarked, "The signing ceremony is a momentous occasion as the manufacturing facility would meet the requirements of Railways and industry. This assumes special significance considering the fact that bogies and couplers are in short supply."
As per the *Vision 2020* document of the Railways, the demand for wagons from Indian 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 SAIL-BSCL venture will be able to beat the competition and secure a good share of the market for the new/ upgraded products.
SAIL Chairman Mr C.S. Verma (standing 2nd from right) and Railway Board Member (Mechanical) Mr Keshav Chandra holding copies of the JV document in the presence of (seated from left) Union Minister for Railways Shri Mukul Roy, West Bengal Chief Minister Ms Mamata Banerjee, West Bengal Finance Minister Shri Amit Mitra and West Bengal Industries & Commerce Minister Shri Partho Chatterjee at Writers' Buildings in Kolkata
