China’s largest train maker launches India ops with Haryana factory

  • Sutirtho Patranobis, Hindustan Times, Beijing
  • Updated: Aug 21, 2016 14:43 IST
A bullet train passes over Yongdinghe Bridge in Beijing. (AP File Photo)

China’s biggest high-speed train and railway equipment maker announced that its first joint venture in India has started operations over the weekend in Haryana, in an indication that Sino-India cooperation in the railways sector was poised to take off.

It is for the first time that the Beijing-based China Railway Rolling Stock Corporation (CRRC) – a mammoth state-owned enterprise (SOE) in China with more than 175,000 employees – was setting up a joint venture in south Asia.

A subsidiary of the company has supplied subway trains for the Rio De Janeiro Olympics.

Its first plant in North America started operations in September 2015 in Massachusetts.

The Sino-India joint venture, expected to manufacture and repair locomotive engines, is being called the CRRC Pioneer (India) Electric Company and has been set up in the Bavo Industrial sector in Haryana, on the New Delhi and Mumbai industrial corridor.

“Total investment is $ 63.4 million and the Chinese side holds 51% of the share,” the CRRC said in a statement.

“It will also provide technology support to India’s rail system, and supply electric transmission systems to oil drilling, wind power generation and mining equipment making in India,” the statement said.

“It is the first time for the company to open a plant in south Asia where one of the world’s most comprehensive rail system spans. CRRC is also the first foreign company to set up assembly line of rail transportation equipment in India after PM Narendra Modi unveiled his ambitious ‘Made in India’ campaign in 2014,” it added.

The Chinese company has been present in the Indian market since 2007, supplying subway trains, engines and other equipment.

It will, however, be the first time that CRRC begins manufacturing in India.

“Given more than 60,000 kilometres of railways in India, it is far from enough to build a single locomotive engine plant in India,” company vice-president Yu Weiping said.

“CRRC will build more plants able to produce trains, locomotive traction systems and other key parts in India,” he added.

CRRC Corporation was formed in 2015 following a merger between China CNR Corporation Limited and CSR Corporation Limited and has since focussed on foreign markets.

In March, the Delhi Metro Rail Corp and CRRC Nanjing signed a Memorandum of Understanding for supply of 19 four-car train sets for the Noida metro.

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