Title - Rail coach project: MPs to meet PM

Nod for SAIL proposal for joint venture with Railways

M.B. Rajesh, MP, has said that a delegation of MPs from Kerala will meet Prime Minister Manmohan Singh soon to seek approval for the proposal of the Steel Authority of India (SAIL) for a joint venture with Railways to set up a rail coach factory at Kanjikode for which the foundation stone was laid in February last year.In a statement here, he said that Union Ministers from Kerala will also be approached to take up the matter with the Prime Minister for the speedy sanction of the SAIL proposal.Mr. Rajesh said that though the then Union Railway Minister Pavan Kumar Bansal had assured Parliament in April this year that the SAIL proposal for a joint venture will be considered, the new Railway Minister Mallikarjun Kharge told Parliament on Tuesday that the Planning Commission will not approve this proposal as it had given sanction for a Public Private Participation (PPP) project earlier.Mr. Rajesh said that even after one-and-a-half years of the foundation stone laid for the coach factory no private partner came forward for the joint venture.The SAIL proposal is most attractive for Railways because its investment will be only 26 per cent of the total project cost of Rs.550 crore.In this, if the share of the land value already paid by the Railways is converted as equity the future investment will be only a few crores of rupees for Railways.The SAIL had also offered to take more percentage of equity if required.

It had offered to start production in 18 months once the final approval was given by the government as against the four-year project period under PPP.

Mr. Rajesh said that the SAIL chairman C.S. Varma had sent the proposal to the Railway Board chairman on April 22, 2013 to manufacture world class passenger wagons. Already the SAIL is having two major joint venture projects with Railways at Kutli and Nellingam.

Concept paper

The SAIL had also submitted a detailed concept paper for the project to manufacture Link Hoffman Busch passenger coaches using both steel and aluminium. The SAIL offer should be approved by the government, Mr. Rajesh said.

SAIL proposal most attractive for Railways,

claims MP

Says SAIL chairman had sent plan to Railway Board chairman