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MoU for bogie unit in Kerala

NEW DELHI: The Union Ministry of Railways and the Kerala government on Saturday signed a memorandum of understanding (MoU) to form a joint venture company for fabrication of bogie frames for passenger coaches and wagons.

According to the MoU, inked by senior Railways and Kerala Government officials in the presence of Railways Minister Lalu Prasad and Kerala Chief Minister V.S. Achuthanandan here, Indian Railways will hold 51 per cent stake in the company and the remaining 49 per cent will be held by the Kerala Government. Speaking on the occasion, Mr. Prasad said the foundations of the factory would be laid soon, for which the Kerala government had decided to give land free of cost. “This historical joint venture will benefit the people of Kerala as well as Indian Railways. In view of the rapid increase in passenger services, the need for additional passenger coaches is growing fast. Railways have a limited capacity to manufacture fabricated bogies; this capacity addition will help in meeting our future requirements,” Mr. Prasad said. The joint venture, to be constituted within the next six months, would come into existence in a phased manner. The factory for fabrication of bogie frames for passenger coaches and wagons would come up by utilising the land and other assets of Steel Fabrication Unit (SFU) and Autokast.

As per the MoU, the Kerala government will clear all its liabilities and obligations as owner, promoter and guarantor of Steel Fabrication Unit and Autokast, and transfer the assets to the joint venture along with the employees.

Indian Railways will be providing all necessary inputs in the form of technology, management and training to start the fabrication activity for components, while a joint working group will be constituted to prepare business plan and work out the modalities for the formation of joint venture and fixation of prices.

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