Jindal Steel and Power Limited (JSPL) has invested Rs 2 billion (EUR 26.5 million) to set up the country’s first commercial facility to manufacture special quality rails (head hardened rails) for high speed train corridors and metro lines. JSPL’s new plant will have a capacity of 30,000 tonne of rails per month and has been set up in technical collaboration with SMS MEER, Germany. JSPL’s domestically produced rails will facilitate delivery in shorter times and smaller order quantities when required, thereby reducing dependence on imports.
JSPL will thus compete with the state run Steel Authority of India’s Bhilai Steel Plant (BSP), the sole supplier of rails to the Indian Railways over the past four decades. BSP’s upcoming 1.2 million tonne Universal Rail Mill, also set up by SMS MEER and due to be commissioned in 1-2 months, will also have the capability to produce head hardened rails and long rails.
Based on current demand projections, the Indian Railways will require nearly 1 million tonnes of head hardened rails over the next five years.
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