Kolkata: A senior official of the company stated that Ramkrishna Titagarh Rail Wheels Ltd (RTRWL), a partnership between Ramkrishna Forgings Ltd and Titagarh Rail Systems Ltd in the city, is close to finalizing finances for its Rs 2,180-crore forged wheels project.
Financial closure in project financing occurs when all terms of a financing agreement are satisfied and funds are soon to be available. The project is moving forward smoothly. "The company has obtained legal approvals and is close to finalizing financial arrangements," stated Prithish Chowdhary, a board member of RTRWL and Deputy Managing Director of Titagarh Rail, to PTI. RTRWL's new manufacturing plant in Chennai will have a starting capacity of 228,000 wheels per year.
The plan will be carried out in two stages - Phase I, which will cost Rs 1,810 crore and Phase II (Rs 370 crore). Chaitanya Jalan, full-time director of Ramkrishna Forgings, stated that the funding will be a mix of debt and equity in a 70:30 proportion.
RTRWL, which is a 51:49 joint venture, is aiming to raise approximately Rs 1,530 crore in debt after obtaining a stable rating from Ind Ra for its term loan. Officials from the company stated that a total of Rs 650 crore in equity capital will be gradually injected based on the ownership of the parent companies as the construction progresses. Phase I activities will start in April 2026, with a capacity of 114,000 wheels per year. Phase II is set to increase production by 114,000 wheels per year and is scheduled to start operating in 2028-29.
Jalan stated that the company's first focus will be meeting Indian Railways' needs under the wheel supply agreement program, with the rest of the supply going to private players in domestic and export markets. In a deal with the Ministry of Railways, RTRWL will provide forged rail wheels - up to 80,000 wheels annually (equivalent to 35 pc of capacity) - for 20 years as a component of the 'Atmanirbhar Bharat' program.
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