Business Standard

Making hay in the railway boom

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Vijay C Roy Chandigarh

The Kapurthala unit of the Rail Coach Factory (RCF, a production unit of the Railway Ministry) has manufactured 19,438 coaches since inception in 1987. This is almost 50 per cent of Indian Railways' fleet. The sustained demand has brought cheer to thousands of employees associated with the factory. It is also good news for 500 ancillaries in the northern region, which supply components to the factory.

 

The ancillaries are not only expanding their manufacturing capacity, but bringing in latest imported machinery to meet the spurt in demand and quality. Currently, about 1,000 ancillaries across India supply to the RCF. Of these, around 60 per cent are SMEs located in the northern region. In Punjab (including Chandigarh), nearly 200 SMEs manufacture components for RCF.

"The setting up of the RCF at Kapurthala not only attracted ancillaries, but has also led to rapid industrialisation of the area," a vendor said. RCF achieved a record production of 1,480 coaches during 2007-08 against the target of 1,438 coaches.

Last year's production was also the highest-ever growth in production (12 per cent) in a single year.

RCF has set a target to manufacture 1,550 coaches during 2008-09. This includes 150 stainless steel coaches for Rajdhani and Shatabdi Express trains and 100 low-cost stainless steel coaches with air Spring suspension System for introduction in other mail/express trains.

Speaking to Business Standard, Amandeep Singh, director (operations), Mohan Rail Components (P) Ltd, said: "To provide high precision components, we have imported an Italian CNC laser cutting machine. We also have plans to increase our production capacity at our existing location to meet demands. We are also going to supply biodegradable toilets for two coaches this year."

His company has signed an agreement with Defence Research and Development Organisation (DRDO) for the technology. Singh's company supplies seats, berths, doors, windows, water tanks, stainless steel components to RCF.

Suresh Jain, partner, Rail Tech, said, "The excellent growth of RCF is a . My company supplies about 400 items like Luggage Rack, Coach Chassis(Front Part), End Wall etc. to the factory.

We are expanding in Kangra district of Himachal Pradesh to enjoy tax holiday with an investment of Rs. 3 crore." Jain's company recently imported machinery for precision control and to increase production. His company also supplies component to the ICF(Integral Coach Factory), Chennai and BEML (Bharat Earth Movers Limited), Bangalore.

RCF has earmarked Rs 170 crore for expansion. Production capacity will be increased from 1,000 coaches to 1,500 coaches with an investment of Rs 92 crore. It has plans to set up a wheel-shop project with production capacity of 1,900 coaches per annum with an investment of Rs. 68 crore. Also, in the offing is a centre for excellence in design with an investment of Rs 10 crore.

In an interaction with Business Standard, SK Suri, general manager, RCF said: "We plan to increase the production capacity from 1,500 to 1,800 coaches per annum. Sanction is waited. The expansion is likely to attract an investment of Rs 250 crore."

In order to improve the safety of passengers, crash worthy coaches has also been produced by RCF, which are capable of absorbing high impact energy in non-passenger area of a coach at its ends, while keeping the middle passenger portion safe.

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First Published: Jul 14 2008 | 12:00 AM IST

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