Who: Ministry of Railways
What: Signed AOT Agreement with SAIL-RITES Bengal Wagon Industry Pvt Ltd
When: 24 November 2015
The Ministry of Railways on 24 November 2015 signed the Assured Off Take Agreements (AOT) with SAIL-RITES Bengal Wagon Industry Pvt Ltd (SRBWIPL) for manufacturing and rehabilitation of wagons at Kulti, West Bengal.
Highlights of the agreement
• With the signing of the agreement, two major PSUs namely RITES of Ministry of Railways and SAIL of Union Ministry of Steel will form a joint venture SRBWIPL.
• The joint venture is a 2500 Crore rupees Make in India Initiative.
• This is a long term Agreement for manufacturing of 1200 wagons per annum and rehabilitation of 300 wagons per annum for a period of 10 years.
• The factory will manufacture modern stainless steel wagons which are required for expansion of Indian Railways and for domestic and international market.
• It will contribute to the economic development of the region and lead to employment generation and creation of ancillary industries.
• The land for the factory has been provided by SAIL and has been constructed at an approximate cost of 120 crore rupees.
• This factory will generate employment for about 400-500 people and will provide skill development opportunities for local people.
The project was announced in 2010-11 and subsequently a Joint Venture SRBWIPL (50%:50%) was set up between two major PSUs SAIL and RITES.
SRBWIPL has already been awarded ISO: 9001-2008 certification for its Quality Management System and its ISO 14001 for Environment Management System is expected by January 2016.