SAIL producing special rails used in high-speed freight corridors on trial basis

New Delhi: State-owned steel maker Steel Authority of India (SAIL) will produce some quantity of special rails used in high-speed freight corridors and metro rail projects this year, according to a company official.

SAIL has set up a facility for the production of head hardened (HH) rails at the new Universal Rail Mill (URM) at its Bhilai Steel Plant (BSP) in Chhattisgarh.

"…we will be of course producing some quantity in this year," Steel Authority of India Ltd (SAIL) Director Finance Anil Kumar Tulsiani said.

The head hardened rail is still under trial and once the trial is successful the company will be in a position to finalise the quantity to be produced, he spoke during the Q1 Earnings Conference Call.

Such rails are manufactured using head hardening technology to bear about 50 per cent higher pressure compared to normal rails.

Replying to another query, Tulsiani said it is too early to give SAIL's capex guidance for the entire year adding that there were a lot of projects in the pipeline for which already the board has given its go-ahead.

"….the orders will fructify in this year only but yes our endeavour is to do as much as possible because these schemes whatever are there they are basically some debottlenecking schemes so the more we finish them off in a faster time, it will be better for the plants also," he explained.

SAIL is one of the largest steel-making companies in India. It produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of the country.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Google News. Click here to follow. Also, join PSU Watch Channel in your Telegram. You may also follow us on Twitter here and stay updated.)