IR to Explore Hiving Off Production Units into Separate Entity

Indian Railways (IR) has decided, as part of its 100 Day Plan, to conduct a detailed study on the hiving off and corporatization of its production units into a separate entity.

RailPost had earlier identified this as a key issue that a new minister will have to pay attention to.

This entails hiving off its seven production units (PU) and their associated workshops into a new government-owned entity named Indian Railway Rolling Stock Company under the Railway Ministry.

As on date, IR fully owns three coach factories – Integral Coach Factory (ICF) Chennai, Rail Coach Factory (RCF) Kapurthala, Modern Coach Factory (MCF) Rae-Bareli; three locomotive manufacturing units – Chittaranjan Locomotive Works (CLW) Chittaranjan, Diesel Locomotive Works (DLW) Varanasi and Diesel Loco Modernisation Works (DMW) Patiala.

IR also owns one Wheel and Axle Plant at Bengaluru, totalling seven production units on IR .

Profit Centre

IR plans the turning of each of its PUs into a profit centre led by a CEO reporting to the Board / CMD of the new entity (IR Rolling Stock Company). The aim is to drive technology, partnership and modernization in rolling stock to produce better and safer coaches, enhance operational efficiency besides exporting their produce.

The plan is to consult rail unions, obtain government nod and get started on one PU – mostly the newest, Modern Coach Factory, Rae-Bareli. All other production units will be taken over by the rolling stock company in a phased manner.

It is not yet clear what will be the plan of action with production units and workshops that are currently being set up and haven’t been commissioned yet.

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