Jindal Rail to invest Rs 2700 cr in wagon facility
Jindal Rail Infrastructure Ltd, a 100 per cent subsidiary of Jindal ITF, the infrastructure arm of Jindal SAW Ltd, is likely to finalise a technical tie-up with a Japanese company for manufacturing of electric multiple unit (EMU) coaches at its upcoming wagon making facility at Karjan near here. Indresh Batra, managing director, Jindal SAW Ltd and vice-chairman Jindal ITF, part of the $12 billion O P Jindal Group, said: â€œWe are all set to sign an agreement with the Japanese player by the end of this year and can look forward to manufacturing EMU coaches from 2011.â€? While he declined to share further details, he claimed the new venture is likely to financially break even by 2011. The company today announced an investment of Rs 2,700 crore over the next three to five years on the 116-acre Karjan facility, that will produce 3,000 stainless steel wagons yearly in the first phase. The first phase investment would be Rs 157 crore, of which 30 per cent would be equity contribution. The facility would manufacture open-type freight wagons for coal and iron ore traffic, as well as covered wagons for cement and foodgrains and container wagons. Manufacture of a prototype wagon and its approval by the Research Designs and Standards Organisation is expected by January 2011 and series manufacture of wagons can start from February onwards. The electric and diesel multiple units would be manufactured in the second phase. On completion, the project would employ around 4,500 people and nearly 1,500 would be employed in the first phase. Batra said all fresh procurement by the Indian Railways would be of stainless steel wagons and their demand is estimated at 20,000 wagons per year. Nearly 75 per cent of the the net production from the facility would go to the Railways, while the rest would be for private players.