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The Indian Railways, the country's national transporter, is facing challenges in meeting the growing demand for wheels, leading to a reliance on imports, primarily from Chinese companies. The domestic supplies from Steel Authority of India Limited (SAIL) and Rashtriya Ispat Nigam Limited (RINL) have not kept pace with the increasing requirements.
While Indian Railways' own production units have fulfilled their commitments, other public sector sources, particularly SAIL, faced issues due to their capital maintenance schedule. As a result, officials have urged these organisations to expedite wheel production to avoid heavy reliance on Chinese imports. The shortage in domestic supply not only affects the Indian Railways but also impacts the output of its production units and hampers repair activities.
RINL had established a forged wheel plant in Raebareli, Uttar Pradesh, to address the demand, but the supply of Linke Hofmann Busch (LHB) wheels from RINL has yet to stabilise. To bridge the gap, Indian Railways has imported a significant number of wheels, and additional imports are expected soon.
SAIL, in response to the challenges faced, cited a planned capital repair in its Wheel and Axle Plant from August 28, 2023, to September 25, 2023. Despite this scheduled maintenance, SAIL managed to supply 2,849 wheels to Indian Railways in September 2023, compared to 3,720 wheels supplied in the same month of the previous year. The company adjusted its supply targets due to the planned overhaul, aiming to provide 14,934 wheels in the July-September quarter of FY24, slightly lower than the previous year's figure of 15,049.
SAIL expressed confidence that its production in the remaining months of the financial year would be higher, as there were no further capital repairs scheduled, addressing the shortfall in the earlier part of the fiscal year.
Source: Indiatimes
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