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Thursday, June 20, 2024

Steel Authority of India in JV with Burn Standard

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The Steel Authority of India Limited has signed a joint venture agreement with Burn Standard Company Limited for setting up a wagon components manufacturing facility at an estimated cost of $40 million.

The JV will produce the component from BSCL’s facility at Jellingham, Purba Medinipore district, in West Bengal and will have a capacity to produce 10,000 bogies and 10,000 couplers per annum.

Chief Minister Ms Mamata Banerjee said:

“I had announced the project in my 2010 budget speech and Railways have assured annual off take for 5,000 units. It will be complete by 2013 and not 2014 as planned. ’’

SAIL Chairman C.S. Verma stated:

“We are on the lookout for new markets and 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.”

“The deal is very important 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,” Keshav Chandra, Railway Board Member (Mechanical) stressed.

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.

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