Railways to take over sick wagon manufacturing PSU in BIHAR and revive

The government on Thursday gave its approval for the transfer of Bharat Wagon & Engineering Company, a sick PSU, in Patna under the Ministry of Heavy Industries, to the Railways while granting a financial package of about Rs 160 crore for the revival of the company.

"The Cabinet Committee on Economic Affairs gave its approval for the transfer of administrative control of BWEL, a subsidiary of Bharat Bhari Udyog Nigam Ltd (BBUNL) to the Ministry of Railways after its financial restructuring," the Finance Minister, Mr P Chidambaram said after the CCEA meeting. Later expressing confidence to revive the company, the Railway Minister, Mr Lalu Prasad Yadav said, "Railways will revive this sick company and will invest money required in it."

The Railways has decided to invest Rs 41 crore in the company, while the government proposed to convert its pending dues worth Rs 145 crore into equity and write off the interests on the loan. With the takeover of the company, it would be able to get re gular orders for manufacturing of wagons, increase its productivity and improve its financial position, said the Railway Minister.

Incorporated in 1978, BWEL is a 100 per cent subsidiary of Bharat Bhari Udyog Nigam Ltd (BBUNL) under the Ministry of Heavy Industries and Public Enterprises and has the capacity to manufacture 2,500 wagons annually besides LPG cylinders.

Two of its manufacturing units are located at Mokamah and Muzaffarpur and a third manufacturing unit at Bela in Bihar