BEML keen on developing bullet train coaches in India, but awaits clarity

BEML Ltd, the country's largest railway coach maker, is awaiting clarity on the indigenisation of coaches of the proposed Ahmedabad-Mumbai bullet train, a top company official has said.

"We are keen in the indigenisation of bullet train coaches. BEML had tied up with Japanese company Hitachi in this regard. There is nothing final yet on the quantum of the indigenisation project or total order for the coaches," BEML Chairman and Managing Director D K Hota said.

He was in Kolkata on Monday to sign a MoU with Heavy Engineering Corporation Ltd for cooperation in manufacturing of high-value mining equipment.

Indigenisation of coaches is part of the Central government's 'Make in India' mission.

"We are also well-placed for the project, as we already make rail and metro coaches, the only difference being they (bullet trains) will be have aluminium bodies," Hota said.

The focus initially will be on assembly of parts of the coaches for the bullet train project, but the state-owned company may look at local production at a later stage.

A total of 240 coaches will be procured for the project and some of them would be assembled in India, Hota said.

Bullet train operations are slated to commence by 2023 between Mumbai and Ahmedabad, with the help of Japanese investments and technology, and the government has already formed the National High Speed Railway Corporation to execute the project.

The railway coaches business is a key and growing segment for BEML, which has a capacity for 800 rail coaches and 300 metro coaches per annum.

Mining still remains the highest revenue generator for BEML, but the rail and defence verticals are expanding faster, company officials said.

Hota said BEML is aiming at 30-per cent rise in the bottom line in the 2018-19 fiscal.