New Delhi, Nov 24 (IANS) Indian Railways on Tuesday entered into a Rs.2,500 crore agreement with SAIL-RITES Bengal Wagon Industry (SRBWIPL) for manufacture of wagons at Kulti, West Bengal.
As per the railway ministry, the assured off-take (AOT) agreement will enable the commencement of production of stainless steel wagons at the factory.
Railway Minister Suresh Prabhakar Prabhu said the agreement will give a boost to Prime Minister Narendra Modi’s “Make in India” initiative.
The two central public sector undertakings — SAIL and RITES — have set up a joint venture which was announced in 2010-11.
Under the AOT, the JV will manufacture 1,200 wagons per annum and rehabilitate 300 wagons per annum for a period of 10 years.
The minister pointed out that steel is very important component for the development of economy, as increased consumption of the metal spurs demand for iron ore which in turn helps railways generate more freight revenue.
He suggested that the railways consider other options like aluminium for manufacturing wagons.