Taking cue from China, Indian Railways plans to merge coach manufacturing units into a new entity

The name of the new proposed entity for rolling stock manufacturing will be Indian Railway Rolling Stock Company .

Published: 04th July 2019 10:57 AM  |   Last Updated: 04th July 2019 10:57 AM   |  A+A-


Image used for representational purpose only. (Photo| EPS)

By Express News Service

Indian Railways is planning to merge its coach manufacturing (locomotives and rolling stock) units and workshops into a new public sector unit (PSU) in line with China Railways Rolling Stock Corporation (CRRSC). 

The name of the new proposed entity for rolling stock manufacturing will be Indian Railway Rolling Stock Company (IRRSC). Officials from the Ministry of Railways is preparing a cabinet note for setting up  of the unit. They will start the formulation work with the modern coach factory in Rae Bareli. The remaining units can be merged by the new entity gradually in a phased manner. Consultation with unions is a must before moving the Cabinet note. It is also due to get the approval from the central government.

The idea behind the restructuring plan is to ensure operational efficiency at a time when Indian PSUs are marred by inefficient decision-making, poor reporting structures, slow execution and powerful trade unions. Officials also explained that each unit will operate as a profit centre reporting to the CEO, who will report to the chairman and managing director (CMD) of the new PSU. The CMD will report to the Railway Board. If implemented, this will demolish the existing convention of manufacturing units headed by general managers.

At present, Railways operate Chittaranjan Locomotive Works, Dhankuni; Diesel Locomotive Works, Varanasi; Diesel Modernisation Works, Patiala; Integral Coach Factory, Patiala; Rail Coach Factory, Kapurthala; and Modern Coach Factory, Rae Bareli.

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