NEW DELHI :  Billed as a major step in line with “Make in India’’ initiative of the Modi government, Indian Railways and the Steel Ministry on Tuesday formally signed an assured off take agreement between two of their Public Sector Undertakings (PSUs) for manufacture and rehabilitation of wagons at West Bengal.

The agreement was signed between RITES and SAIL in the presence of Railways Minister Suresh Prabhu and Steel Minister Narendra Singh Tomar. The JV project was announced in 2010-11 and the factory was developed at a cost of about Rs. 120 crore.

The project combines manufacture and infrastructure expertise of SAIL and RITES with Indian Railway’s commitment and support of a long term assured off take for which the agreement was signed between the two PSUs.

The new facility will manufacture 1200 high speed stainless steel wagons annually and undertake rehabilitation of 300 wagons every year for a period of 10 years.

The total cost of the assured off take will be about Rs. 2500 crore. The factory is likely to generate employment for about 400 to 500 people and will also provide skill development opportunities for the local people.

The factory is equipped with high-end state-of-the art machinery and plant to achieve quality as well as productivity.

Speaking on the occasion, Prabhu said the production and consumption of steel in the country was an indicator of the potential economic growth.

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