The Indian Railways is planning to hive off its production units and associated workshops into a new government-owned entity. The new entity will be called – Indian Railway Rolling Stock Company – under the Ministry of Railways. This is one of the 11 proposals prepared by the railways in its 100-day plan.
Production units under one entity
- The objective of bringing the production units under single entity is to increase technology partnership and modernisation to build world-class coaches and locomotives.
- Indian Railways will conduct a detailed study of its seven production units, according to the document prepared by the Railway Board.
- The seven production units include:
- Each production unit will have a Chief Operating Officer and will work as an individual profit centre, reporting to the Board/CMD of the new entity.
- This move will enable wider market access including state-of-the-art technology (modern railway coaches), superior operational efficiency and promote exports.
Project may kick off with MCF
- Indian Railways is looking to immediately start consultations with unions.
- It will come up with a Cabinet note for the approval of at least one production unit to begin with.
- The project may kick off with Modern Coach Factory (MCF) in Rae Bareli.
- Subsequently, all the other remaining production units will also be taken over by the Indian Railway Rolling Stock Company in a phased manner.