By IANS,
New Delhi : The ministry of railways and Kerala’s department of industries and commerce Saturday signed a pact to form a joint venture for fabrication of bogie frames for passenger coaches and walls of railway wagons.
According to an official statement, the new entity will utilise the land and other assets of Steel Fabrication Unit (SFU) and Autocast of Steel Industrials Kerala Ltd, a public sector undertaking of Kerala.
Railways will provide necessary inputs in the form of technology, management and training to start the fabrication activity for components.
Indian Railways will hold 51 percent equity in the joint venture and the remaining 49 percent will be held by the Kerala government.
A joint working group (JWG) will be set up in the next six months to prepare business plans and work out the modalities for the formation of the new company.
At present, the railways have a limited capacity to manufacture fabricated bogies for passenger coaches.