Indian Railways eyes Corporatization of Train coach, Locomotive Factories


The objective is to use the new entity to drive technology partnership and modernisation for world-standard coaches and locomotives production

According to Financial Express,Indian Railways will conduct a detailed study of seven of its production units.
Indian Railways looks to corporatize production units! 

Aiming to bring in increased efficiency in production, Indian Railways is looking to hive off its rolling stock and locomotive production units and associated workshops into a new government-owned entity called “Indian Railway Rolling Stock Company”. 

This will be under the Ministry of Railways. The proposal is part of Piyush Goyal-led Indian Railways 100 day roadmap document for the national transporter, learns Financial Express Online. 

The objective is to use the new entity to drive technology partnership and modernisation for world-standard coaches and locomotives production.

According to the document prepared by the Railway Board, Indian Railways will conduct a detailed study of seven of its production units, namely, Chittaranjan Locomotive Works (CLW) in West Bengal, Integral Coach Factory (ICF) in Chennai, Rail Coach Factory (RCF) in Kapurthala, Diesel Modernization Works (DMW) in Patiala, Diesel Locomotive Works (DLW) in Varanasi, Wheel & Axle Plant in Bangalore, and Modern Coach Factory (MCF) in Rae Bareli.

Each production unit with a CEO will function as an individual profit centre, reporting to the Board/CMD of the new entity. 

The national transporter is of the view that the move will enable wider market access including state-of-the-art technology (modern railway coaches), superior operational efficiency and promote exports.

Indian Railways is looking to immediately start consultations with unions and 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 MCF in Rae Bareli as it is a new production unit. Subsequently, all the other remaining production units will also be taken over by the Indian Railway Rolling Stock Company in a phased manner.

The MCF in Rae Bareli was declared a Production Unit of Indian Railways in July 2014 and within a month, the factory started the production of fully formed coaches.


 A press release issued by the Railway Ministry, earlier this year stated that under ‘Make in India’ initiative, new concepts such as extensive use of Robotics, automation etc. are also being implemented in the MCF. 

Moreover, new generation safer LHB coaches are being manufactured in the factory, contributing to railways and passengers safety.

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