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Titagarh Consortium on track to roll out rail wheels by mid-2026

Titagarh Consortium on track to roll out rail wheels by mid-2026

Construction of the Chennai wheel plant is progressing as scheduled and total capex for this project is estimated at Rs 1800-2000 crore with an annual production capacity of 220,000 wheels

Richa Sharma
  • Updated Jul 16, 2024 1:49 PM IST
Titagarh Consortium on track to roll out rail wheels by mid-2026   Last year, the consortium was awarded a contract valued at Rs 12,226 crore for the manufacturing and supply of forged wheels under the Aatmanirbhar Bharat initiative

Amidst rising demand for wheels for trains, the Titagarh-Ramkrishna Forgings consortium, which bagged the contract to manufacture forged wheels, said it is on track to roll out the first wheel by May 2026 as per contract with the Indian Railways.

According to the consortium, the construction of the wheel manufacturing plant is progressing as scheduled and the state-of-the-art facility is designed to address the increasing demand for wheels.

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“Indian Railways estimates the requirement for wheels to rise to 200,000 per annum by 2026. With the establishment of our new plant for forged wheels, we are aiming to meet a significant portion of the domestic demand for locomotives and trains,” Prithish Chowdhary, Deputy Managing Director of Titagarh Rail Systems Limited, tells Business Today.

The project is expected to be a key step in addressing the gap between demand and availability of wheels in India. At present, Indian Railways imports wheels from countries like China, Russia, Brazil, and a few European countries.

“The supply chain faced disruptions last year due to global conflicts, impacting the production of Vande Bharat Express trains. In 2022-23 alone, we imported around 80,000 wheels worth Rs 520 crore were imported from China and Russia, while the remaining 40,000 were sourced from SAIL. With the induction of more Vande Bharat and semi-highspeed trains, the demand for forged wheels will further rise, making domestic manufacturing capacity essential,” said Chowdhary.

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The total capital expenditure (capex) for this project is estimated at Rs 1,800–2,000 crore, funded through a mix of debt and equity. The facility, once operational, will have an annual production capacity of 220,000 wheels.

This capacity is designed to meet the demands of the Railway sector and the private Indian market and export needs. It will reduce dependency on imported wheels while strengthening export capabilities and solidifying India’s global competitiveness.

Last year, the consortium was awarded a contract valued at Rs 12,226 crore for the manufacturing and supply of forged wheels under the Aatmanirbhar Bharat initiative by the Ministry of Railways. Over 20 years, it will supply approximately 1.5 million wheels.

“Our initiative represents an important step towards localising wheel production through private entities, aligning with the Prime Minister’s vision of making India truly Atmanirbhar. The project also aligns with India’s broader industrial strategy, which aims to boost manufacturing output and position India as a global manufacturing hub,” he added.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Published on: Jul 16, 2024 1:49 PM IST
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