Rail Wheel Factory plans Rs 200 crore for expansion

Bangalore: The captive production unit to supply the rolling stock to Indian Railways — the Rail Wheel Factory (RWF) — is on an expansion mode, with a planned investment of over Rs 200 crore in the next three years.

RWF will almost be doubling its capacity to two lakh wheels and 75,000 axles with an estimated investment of Rs 50 crore during the current financial year.

RWF currently produces 1.15 lakh wheels and 50,000 axles. However, the factory expects to finish the current financial year with a production of 1.5 lakh wheels, a rolling stock for which the Railways was facing shortage due to rapid growth in its passenger and freight traffic.

Growth pressure

The scorching pace of economic growth has put pressure on movement of goods on the railways, which recorded an incremental loading of more than 200 million tonnes in the last for years. During 2007-08, Indian Railways will be adding another 60 million tonnes of freight traffic with the industrial production witnessing a phenomenal growth, adding to the demand for freight movement facilities.

Mr B.B. Modgil, General Manager, RWF-Bangalore, told Business Line that Indian Railways had achieved a virtual self sufficiency in the supply of rolling stock, with dependence on imports restricted to only five per cent.

The RWF and Durgapur Steel Plant together supply 95 per cent of the Indian Railways’ demand for wheels, which is currently estimated at three lakh.

Freight corridor

Mr Modgil said with the Dedicated Freight Corridor project expected to take off soon, the demand for wheels would go up considerably.

He said during the cumulative demand during the Eleventh Five Year Plan is set to touch 4.15 lakh wheels for multiple users of passenger coaches in the long distance and the Electrical Multiple Units (suburban rail coaches) locomotive and freight coaches.

With the second production facility to manufacture wheels expected to be ready by the middle of next year in Chhapra in Bihar, Indian Railways would be able to meet its five-year demand projection. Chapra unit is slated to have an annual capacity of 1-lakh wheels.