Rashtriya Ispat Nigam (RINL) plans to set up a Rs 278-crore railway freight car axle plant on a 46-acre plot of land at New Jalpaiguri in the northern part of West Bengal.

   The project would have the capacity to produce 50,000 pieces of axles a year. Each axle will have the load bearing capacity of between 22.9 tonne and 25 tonne and will be 210 mm in diameter. The new plant will have the facility of forging and heat treatment. At present, the Indian Railways depends on substantial imports of axles.

   Indian Railways has signed a 30-year renewable land lease agreement with the public sector company which has started preparatory work for the project. As per the agreement, RINL will pay an annual lease rent at a rate of 8 per cent on the land value, based on the (local) circle rate.

   It is learnt from media reports that the firm initiated for a feasibility study, flotation tenders for the plant and machinery and the off-take agreement with the Railways.

   Though the off-take deal is yet to be signed, it has been agreed that the Railways would purchase around 70 per cent of the production. The remaining output would be meant for local and overseas markets.

   Mecon is said to be preparing the feasibility report for the project, which is expected to be ready for commissioning by the end of 2014.