Titagarh Wagons to expand; enter defence production
29 Jul 2008
Mumbai: Titagarh Wagons Limited (TWL) is planning to increase its wagon production even as it enters design and manufacture of nuke shelters for the defence ministry at its Uttarpara facility.
The company has received orders worth Rs32 crore for the field shelters, after prototype was put to trials by the Defence Research and Development Organisation (DRDO). The ministry has the option to double the order size.
TWL plans to increase wagon production to 5,000 units this year – a 44 per cent increase from last year. The company has already acquired over 9 acres of Titagarh Paper Mills land lying with the Calcutta High Court nearby, for Rs11 crore.
TWL, which currently manufactures conventional wagons, will start manufacturing stainless steel wagons from the facility from the third quarter of this year.
Stainless steel wagons will cost 40 per cent more than the conventional ones, but the pay-back period will be less than two years as the Indian Railways is shifting to stainless steel wagons.
The Railways will provide stainless steel free of cost to TWL, which in turn will invest Rs25 crore for expanding capacity of its 35-acre Uttarpara facility.
The Uttarpara heavy engineering unit, which TWL acquired from Hyderabad Industries Ltd (HIL) in 2005, currently manufactures hydraulic excavators and other mining equipment, apart from electrical multiple units (EMU) coaches.
TWL has also formed a joint venture with FreightCar America to develop and manufacture aluminium rail cars. The JV could start operation by 2010.
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