Steel Authority of India (SAIL), in a joint venture (JV) with the Indian Railways, is planning to set up a coach manufacturing unit in Kanchrapara, West Bengal, in India.
The proposed unit is a part of SAIL's Rs200bn ($4bn) expansion and modernisation, about Rs144bn ($2.93bn) of which is planned to be invested on building a 2.3Mt steel unit at Burnpur.
The JV will explore possibilities including manufacturing metro coaches and entering into railway track laying.
SAIL is in talks with a few leading European rail technology companies regarding the manufacturing of coaches for metro trains, the company said.
The unit is expected to produce 1,200 wagons a year and is expected to commence production in 2013-14.