To be developed at a cost of Rs 521 crore, the modern manufacturing unit will have a capacity to produce 100 wagons each month in the first year and could be scaled upto to 200 wagons a month from the second year.
State Vs Centre Tussle
The Indian Railways had originally planned a wagon overhauling unit plan in Andhra Pradesh. Though initially it was proposed at Secunderabad, it was later shifted to Kazipet as part of the Andhra Pradesh State Reorganisation Act, with a request for allotment of 160 acres.
The Kazipet unit, conceptualised as ‘periodic overhaul (POH) unit’ was meant to repair about 200 wagons per month.
The project could take off only last year, when Rail Vikas Nigam Limited awarded the tender for building wagon repair workshop at Kazipet to city-based Power Mech–Taikisha JV for a cost of Rs 361.79 crore.
However, until February 2023, the project remained a hot potato between the central government and the Telangana government with the latter demanding a full-fledged ‘coach manufacturing factory’ while the former firm on it being a wagon repair workshop at Kazipet.
It was in February 2023, when Union Railway Minister Ashwini Vaishnaw claimed that the POH workshop would be upgraded into a wagon manufacturing facility at a cost of Rs 521 crore.
The demand for a manufacturing unit from local political leaders was based on the reasoning that a full-fledged manufacturing unit would help in economic development of the region and also provide employment opportunities, in view of the enhanced requirement of new wagons by the Railways.
The relent in centre’s stance was primarily driven by multiple factors, including the persistent demand from local political leaders and Indian Railways’ augmented demand for wagons.
