Steel Authority of India and Burn Standard Company, a subsidiary of Railways, today signed agreement to set up a 50:50 joint venture for producing wagon components at Nandigram in West Bengal's East Midnapur district.
Total investment in the project would be Rs 201 crore and commercial production would begin from 2014, Steel Authority of India (Sail) chairman and managing director C S Verma said today.
The project would come up on 50 acre within the existing 128 acre of BIFR company Burn Standard at Jellingham.
Burn Standard managing director D Marandi said Indian Railways was extending support for execution of the project.
"The equity contribution from our end will be Rs 25 crore after adjusting the price of land. Railways will offer Rs 25 crore in a mix of equity and loans to us," he said.
Railways have also offered assured buyback of 50% for 10 years of production of 10,000 bogies and couplers.
Marandi said once the JV was commercialised the company would propose to convert the land into an industrial park.
Nandigram was in news during 2007 when 14 people were killed in police firing.
Nandigram was one of the important issues which led the Trinamool Congress to power in the state.
