Work to begin on Rae Bareli’s 2nd rail factory

  • Srinand Jha, Hindustan Times, New Delhi
  • |
  • Updated: Sep 25, 2013 11:22 IST

Plans to set up the Rs. 960 crore forged wheel factory of the Indian Railways at UPA chairperson Sonia Gandhi’s constituency in Rae Bareli are taking shape, with factory construction work scheduled to begin shortly.

“Blueprints of the factory plan have been finalised. The foundation laying function and “bhoomi pujan’ (traditional prayers) is expected this month. Dates are being finalised,” Chairman Railway Board Arunendra Kumar told HT.

Proposed as a joint venture project between the Railways and the Steel PSU Rashtriya Ispat Nigam Limited (RINL), this is the public transporter’s second gift to Rae Bareli.

The new facility, planned over a 27 acre plot adjacent to the existing rail coach factory at Lalgunj, is targeted to be commissioned in 2017-18.

Last December,  a Memor-andum of Understanding (MoU) was signed between the Railways and the RINL. “The Railways will annually buy 50,000 wheels in the first year of production and the orders will go up to 1 lakh in coming years”, Kumar said.

According to the terms of agreement, RINL will invest the money to build the factory, while the land has been leased by the Railway ministry for 30 years at the rate of 8% of the current value of land.


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