The Indian Railways has assumed control over the operations of Rashtriya Ispat Nigam Ltd (RINL)’s forged wheel plant located in Raebareli, Uttar Pradesh.
This takeover, initiated in April at the commencement of the fiscal year, signifies a significant realignment in the management and utilisation of critical industrial assets. According to officials familiar with the matter, the terms of the takeover involve a partial cash payment to RINL amounting to approximately ₹800-900 crore, coupled with the transfer of ₹1000 crore of RINL’s debt to the forged wheel unit. This transaction underscores the collaborative approach between the Railways and RINL, facilitating a smoother transition of operations while alleviating the financial burden on the steelmaker. The Raebareli forged wheel plant, with an initial investment estimated at ₹2250 crore, boasts a production capacity of 80,000 wheels annually. Leveraging this robust infrastructure, the Railways are poised to make significant investments in capacity ramp-up initiatives at the unit, signalling a commitment to enhancing manufacturing capabilities and meeting the evolving demands of the rail sector.
With the Railways taking charge of the Raebareli plant, we anticipate substantial investments in facility expansion and modernisation,” remarked an official closely involved in the transition process. “By optimising operational efficiencies and leveraging economies of scale, the unit is poised for accelerated growth and enhanced productivity. Forged wheels, a critical component in the railway ecosystem, are crafted through a meticulous process involving heating and high-pressure moulding of solid metal billets. Widely utilised in wagons and locomotives, these wheels play a pivotal role in ensuring safe and efficient rail transport operations, underscoring the significance of strategic investments in manufacturing infrastructure.
As the Railways assume stewardship of the Raebareli forged wheel plant, stakeholders remain optimistic about the transformative potential of this strategic collaboration. With a shared commitment to innovation and excellence, the partnership between the Railways and RINL heralds a new era of synergy and progress in India’s industrial landscape.
