The Indian Railways is taking significant steps towards enhancing its production capacity and reducing dependence on imports with the acquisition of a forged wheel plant from Rashtriya Ispat Nigam Limited (RINL) for Rs 2,300 crore.
In a move aimed at boosting indigenous manufacturing, the Railway Board obtained approval from the Ministry of Railways on April 15, 2024, to acquire the forged wheel plant located in Rao Bareli, Uttar Pradesh. This acquisition, costing Rs 2,300 crore, is part of a broader initiative to bolster production capabilities within the country.
The forged wheel plant, established by RINL, has faced challenges since its inception three years ago, including hurdles posed by the pandemic. With an installed capacity of 80,000 wheels per annum, the plant has struggled to meet the annual requirement of 80,000 wheels, forcing the Railways to rely heavily on imports from various countries.
To address this issue, the Railways plans to scale up production at the Rae Bareli plant gradually. The move aligns with the government’s vision of promoting self-reliance in manufacturing under the Atmanirbhar Bharat Mission.
The acquisition comes at a crucial time for RINL, which has been cleared for privatization by the Government of India. The decision has sparked protests from trade unions and political parties, while some sections within the ruling BJP have called for a reconsideration of the privatization plan.
By acquiring the forged wheel plant, the Indian Railways aims to enhance its manufacturing capabilities domestically, reduce import dependence, and potentially explore export opportunities, furthering the nation’s self-reliance goals.
