Jindal Steel and Power Ltd (JSPL) will more than double its rail making capacity to 2.2 million tonnes by setting a rail mill at Angul, in Odisha with an annual capacity of 1.2 million tonnes per annum (MTPA).
The steel maker owns and operates 1 MTPA rail mill at its Raigarh unit, in Chhattisgarh, where it manufactures speciality rails like 1175 HT, R350 HT, asymmetric rails, and 1080 HH (head hardened) rails for the Railways, metro projects and high-speed freight corridors.
"JSPL will set up a new 1.2 MTPA rail mill at Angul. After the commissioning of the new mill, the total rail-making capacity will be more than doubled to 2.2 MTPA," a company statement said on Thursday.
The company did not disclose investment figures, but sources said the estimated investment would be in the range of Rs 2,500 crore to Rs 3,000 crore.
The company is also supplying 260-meter rails to Indian Railways, dedicated freight corridors and other critical projects of national importance from its Raigarh mill.
These rails are an import substitution product, required for heavy axle loads of more than 25 metric tonnes. Such long rails with minimum welds are a key element in increasing track safety and comfort, it said.
"Our company is proactively augmenting rail manufacturing capacity to support the ongoing expansion and modernization of the Indian rail network. We are committed to support the government's initiatives like Gati Shakti Yojna, AtmaNirbhar Bharat by making available domestically produced products at competitive prices against imported items," JSPL Managing Director Bimlendra Jha.
The company will also explore international markets to supply Made in India rails after fulfilling domestic needs, he said.
JSPL is also exporting rails to multiple countries around the world. It has supplied speciality rail blooms for the European railways.
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