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Ramakrishna Forging with Titagarh Wagons remains lowest bidder for manufacturing 80,000 forged wheels
Industry News- Mar 17,23
In a tender issued by Indian Railways in September 2022 for the production of 80,000 forged wheels every year for 20 years, Ramkrishna Forging Consortium with Titagarh Wagons Limited remains the lowest bidder with quoted Rs 12,226 crore. The company anticipates a business volume of over Rs 15,000 crore with the new production facility.
In the Make-in-India project, which calls for the production and supply of 80,000 forged wheels every year for 20 years, Ramakrishna Forging Consortium with Titagarh Wagons Limited came in as the lowest bidder, surpassing Steel Authority of India Limited (SAIL) and Bharat Forge. While Ramkrishna Forging Consortium with Titagarh Wagons Limited quoted Rs 12,226 crore, Bharat Forge quoted Rs 17,875 crore, and SAIL quoted Rs 18,817.5 crore. The wheels ordered would be required for semi-high-speed and high-speed trains.
The estimated cost of establishing a production facility is around Rs 1,000 crore, the company anticipates a business volume of over Rs 15,000 crore. The bidding documents state that the bidder has to manufacture a total of 80,000 wheels in the first three years, and then the requirement will turn to 80,000 wheels on yearly basis. The winning bidder would be required to set up facilities for machining, testing, and assembly of wheels and axles as well as for manufacturing and manufacturing wheels at the wheel factory. The procurement would be done in line with the Make-in-India policy.
Additionally, the chosen bidder would be expected to establish a wheel testing facility for prototype testing of newly developed wheels at a railway location. Indian Railways issued a tender in September requesting interested parties to establish a facility in the nation to produce forged wheels for semi-high-speed and high-speed trains in an effort to lessen the country's reliance on wheel imports. The Railways would purchase around 80,000 forged train wheels from the proposed factory as an assured offtake for a cost of Rs 600 crore annually.
After supplying the goods to the Railways, the firm would be permitted to sell the forged wheels to Europe and other nations. Up until recently, Indian Railways imported most of the forged wheels it needed from Europe. India can set itself up to sell domestically produced wheels because the European market is severely impacted by the conflict in Ukraine. There would be a need for 2,00,000 forged wheels because the Railways is finalising the contract orders for the first phase of production of 400 Vande Bharat trains. Out of this, Rashtriya Ispat Nigam Ltd. can produce 80,000 wheels. The Railways would thus close the distance with the intended facility and carry out this project.
The problem was brought to light after the national transporter placed an order with a Chinese manufacturer for 39,000 semi-forged wheels last year, blaming disrupted supply lines in Europe due to the Russia-Ukraine war. Forged wheels are specifically created wheels that are constructed under great pressure for trains that operate faster than typical Indian Railways trains.
Ramkrishna Forging Consortium
Titagarh Wagons Limited
Steel Authority of India Limited (SAIL)
Bharat Forge
Semi-High-Speed
High-Speed Trains
Forged Wheels
Indian Railways
Rashtriya Ispat Nigam Ltd
Europe
China
Semi-Forged Wheels
Russia-Ukraine War
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