Rlys sign MoU with Kerala Govt

New Delhi: Indian Railways has signed a memorandum of understanding (MoU) with the Kerala Government to form a joint venture company for fabrication of bogie frames for passenger coaches and side walls for the wagons for Indian Railways.

For this, Railways will utilise the land and other assets of Steel Industrials Kerala Limited, a Public Sector Undertaking of the Government of Kerala, which has two units in Alleppey–Steel Fabrication Unit (SFU) and Autokast. This was a part of Budget 2007-08 proposal.

Indian Railways (IR) shall hold 51 per cent stake in the joint venture company and the remaining by the Kerala Government, the Railway Minister, Mr Lalu Prasad, said here.

The JV will be set up in a phased manner. It will be constituted within six months from the date of signing of MoU. The Kerala Government shall clear all liabilities and obligations of State Government as owner, promoter and guarantor of SFU and Autokast and transfer the assets to the JV along with employees.

A Joint Working Group (JWG) will be constituted to prepare business plan and work out the modalities for the formation of JV and pricing details. IR shall provide necessary inputs.

The MoU was signed by Mr V.K. Pabby, Advisor Mechanical Engineering (Development), Ministry of Railways, and Mr Amitabh Kant, Principal Secretary and Special Commissioner (Industries), Government of Kerala.