In line with Prime Minister Narendra Modi's 'Make in India' initiative, Railway Ministry today signed assured take off (AOT) agreement with Sail-Rites Bengal Wagon Industries Pvt Ltd, a joint venture of PSUs, for manufacturing and rehabilitating wagons in the state.
The signing of agreement marked beginning of production of wagons under the project envisaged in 2010-11.
The AOT is aimed at manufacturing and rehabilitation of 1200 and 300 wagons respectively per annum for a period of 10 years. Cost of the AOT will be Rs 2500 crore and expected to generate employment for about 400 people.
Also Read
Speaking during the event, Railway Minister Suresh Prabhu termed the deal as "significant". He hoped the factory set up by the venture will manufacture "most modern" wagons which are required for expansion of Railways and will emerge as a centre of excellence for development of special purpose wagons for domestic and international markets.
Expressing his satisfaction over the deal, Prabhu said the same created win-win situation for both the parties involved in the agreement. He noted growth in steel sector had taken a beating over the past decade and increase in demand for the metal from various sector was required to ensure it picks up.
"We as Railways carry cargo provided by our customers. So, we are very happy steel sector is on the verge of growth (now) because that, in turn, will bring more cargo to us. So, not just manufactured steel, the end product which is transported, but to make steel you also need iron ore
"That again is transported by Railways. And therefore, creating demand for steel is in the interest of railways, it is beneficial for railways," Prabhu, who was flanked by Union Minister of Steel and Mines Narendra Singh Tomar, said.
He lauded Tomar for Steel Ministry taking efforts to bring legislation on allotment and ways of using natural resources, saying the same will "change" face of "India of tomorrow".
Prabhu also stressed on looking at options of using aluminum in production of wagons. This, he said, will make wagons lighter and at the same time increase their capacity.
On his part, Tomar observed Railways and SAIL as "important" pillars of country's economy and added tie-up between the two will be very "fruitful" for the nation.
Tomar said the Government was not discouraged notwithstanding "hostile" conditions the steel industry and expressed resolved to work with full vigour to overcome the present situation.
"Similarly, Railways too is passing through a tough
phase. Rail is required to transport masses and needed industries too," he said.
Tomar added, "Sometimes industrial plants could not be set up in the absence of rail connectivity to transport freight. If someone dares, he has to shell out more money for transportation. I am happy under the leadership of the Prime Minister and Prabhu, Railways is taking steps towards new heights."
Tomar assured his Ministry will stand along with Railways in their bid for country's development.
The event was also attended by senior officials from both the ministries and PSUs including Railway Board chairman AK Mittal, Steel secretary Aruna Sundararajan and others.
