State-run SAIL today said it will enter into a pact next month with RITES, a subsidiary of Indian Railways, for jointly setting up a railway wagon making unit in Kulti, in West Bengal.
"We will sign the agreement next month for the joint-venture unit with RITES," SAIL Chairman CS Verma told reporters on the sidelines of a book launch function organised by the Dainik Bhaskar group.
Verma said the proposed JV unit will have an annual production capacity of 1,200 railway wagons.
The project is estimated to cost Rs 100-200 crore.
SAIL, which has an annual production capacity of about 14 million tonnes, will supply its specialised steel products to the proposed wagon-making unit, Verma added.
For the project, SAIL may give its surplus land in Kulti near Burnpur, West Bengal. The location of the plant could be near Chittaranjan Locomotive Works.
Earlier this month, Railway Minister Mamata Banerjee had said the tentative name of the factory would be Bengal Wagon Industry.
The present wagon demand in the country is around 25,000 and is expected to rise further, once the dedicated freight corridors start coming up.
