INDIA: State-owned steelmaker RINL-VSP and Indian Railways signed a memorandum of understanding on December 21 to establish a forged wheel factory at Rae Bareli in Uttar Pradesh.

The plant is scheduled to be completed within 36 months at a cost of Rs10bn. It would have a production capacity of 100 000 wheels/year, which Minister for Railways Pawan Kumar Bansal said would go a long way towards meeting IR's future requirements.

It is the second collaboration between RINL and Indian Railways, following the creation of a joint venture to establish an axle plant in New Jalpaiguri.