The Rashtriya Ispat Nigam Ltd (RINL) in a recent cache has secured a mega contract for setting up a steel wheel manufacturing factory with a capacity of 1 lakh units-a-year and involving an investment of Rs. 1,000cr. The plant, which will be set up at Rae Bareli in Uttar Pradesh, the Indian Railways, will provide around 49 acres of land for the plant, including a residential township on lease from a patch of land belonged to Rail Coach Factory, said official sources, adding that the project will be commissioned in 42 months from the time of signing the term-sheet. In this connection, Railways has agreed to take care of 50% of off-take in the first year of production and the figure will be progressively enhanced to around 80% by the third year. In fact, it is not a joint venture agreement. The term-sheet will detail the price (on a cost plus basis) of the products, the land lease rent and other relevant two-way commercial rights and obligations. While Railways will have the first right on the unit's output, RINL will be free to sell outside or export wheels that are not specified for Railway consumption.
India News | For International News click here