BL reported that Titagarh Wagons Ltd has decided to abandon the INR 12.93 crore plan to set up an axle machining and wheel set assembly unit at its Uttarpara factory.
Mr Umesh Chowdhary MD of Titagarh Wagons told Business Line that the oversupply of wheel sets and deteriorating demand prompted the company not to take up the project. The entire amount earmarked for the project would now be utilized for other on going projects particularly the EMU coach project, at the same site.
Last year, the company commissioned the EMU manufacturing facility and succeeded in delivering the prototype 3 car unit for AC-EMU coaches to the Indian Railways in March. The unit has initial capacity of manufacturing two rakes of EMUs a month, each rake consisting of nine EMU coaches.
The demand for EMU coaches, he hoped would grow as the Government was keen on developing and extending metro railways and mass rapid transport systems in major cities.
At the AGM, the shareholders approved the company’s proposal to raise borrowing limits from INR 110 crore to INR 300 crore. The company has several projects in hand including construction of a new shed for special wagons and modernization of existing plant as also revamping of the HED unit, installation of power substation and addition of certain machinery at heavy earth moving and mining equipment unit.
(Sourced from http://www.steelguru.com/news/index/2009/09/16/MTExOTE2/Titagarh_Wagons_drops_wheel_sets_unit_plan.html)
Tuesday, September 15, 2009
Titagarh Wagons drops wheel sets unit plan
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