RINL signs MoU to invest Rs 1,100 cr in rail wheel factory

Plant expected to generate employment for 500-600 people

Rashtriya Ispat Nigam Limited is going to invest Rs 1,100 crore in a railway for making one lakh forged wheels. The Forged Wheel factory would be set up at Rae Bareli in Uttar Pradesh.

This is the third such plant in the country. Under a Memorandum of Understanding (MoU) signed between and the Railways and RINL, the Railways would provide land for the factory. Rae Bareli, the Lok Sabha constituency of UPA chairperson Sonia Gandhi would also host a wagon factory.

According to Railway Minister Mallikarjun Kharge this would reduce the dependence on imports, “The production from this factory shall result in meeting our growing demand of forged wheels, while reducing our dependence on imports,” he said at the signing of MoU.

The plant is expected to generate employment for 500-600 people and is expected to be executed within thirty six months, said Chairman Railway Board present at the occasion.

The project would be spread across 40 acres at Lalganj in Rae Bareli.

The announcement for the Wheel factory was made in the budget of 2013-2014. A global tender was floated for the project and bids were received by major international players. Technology/Equipment Suppliers from Germany, Russia and China have shown interest and the finalization is yet to be done.