SAIL submits bid to Railways to set up manufacturing facility to supply 80,000 wheels per annum

New Delhi: Three companies, including the state-run Steel Authority of India (SAIL) have submitted bids to the Indian Railways to set up a manufacturing facility that will supply 80,000 wheels of various types per annum for the next 20 years to the national transporter.

"The other two companies that have shown interest in setting up the facility are Bharat Forge and Ramkrishna Forgings," according to a statement from the railways on Wednesday.

Indian Railways floated tender on Jan 24

The Indian Railways had floated a tender and invited bids for setting up a wheels manufacturing plant in the country with assured annual offtake of 80,000 wheels for next 20 years to reduce its dependence on imports.

Describing it as an important Make-In-India initiative, the railways said, "The bidding process was very transparent and competitive. Tender was opened on January 24."

Ramkrishna Forgings has emerged as the lowest bidder followed by Bharat Forge and SAIL, it said.

Existing domestic capacity of SAIL is 40,000 wheels

The existing domestic capacity of SAIL is 40,000 wheels and RINL is 80,000 wheels (yet to start regular commercial production), making a total of 1,20,000 wheels. It supplies at an average rate of Rs 1,87,000 per tonne.

During the FY 2022-2023, 80,000 wheels worth approximately Rs 520 crore were imported from China and Russia, with remaining 40,000 being sourced from SAIL.

Requirement of wheels will increase up to Rs 2 lakhs

Due to the ongoing Russia-Ukraine conflict, all the import requirement of wheels is being met from China. The requirement of wheels is projected to increase up to Rs 2 lakhs by 2026 due to induction of more high-speed trains.

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