Chinese rail maker CRRC starts operation in India

The Dollar Business Bureau

China Railway Rolling Stock Corporation (CRRC), Chinese biggest high speed train manufacturer, has said that its $63.4 million first joint venture (JV) plant in India for repairing and manufacturing the railway locomotive engines has begun its operations. 

CRRC, a state-owned firm, is the first international company to set up an assembly line for making rail transportation equipment in the country after PM Narendra Modi launched his ambitious scheme of 'Make in India' in 2014, CRCC said in a statement.

The JV is named CRRC Pioneer (India) Electric Co Ltd and located in the state of Haryana. The manufacturing unit was established with an investment of $63.4 million and the Chinese company holds a majority share of 51 percent, as reported by Xinhua news agency. 

At  its India plant, the company will manufacture and repair railway locomotive engines. 

The firm will also offer technology support to the country’s railway system and provide electric transmission systems to wind power generation, oil drilling and mining equipment manufacturing in India, said the report. 

This is first big investment from China in the Indian Railways after the two countries had discussed a multi-pronged cooperation for participation from China for modernising India’s railway systems. 

Although engineers of Indian Railway are getting trained in China in the field of heavy hauling, the country is also collaborating with India to establish a railway university on similar lines to the one it set up.

In addition to the high speed train, both the countries have an agreement to cooperate in identifying the technical inputs needed to enhance speed on the prevailing railway Chennai to Mysore line. 

Yu Weiping, Vice President, CRRC said that the new facility will generate jobs and tax revenue for the local populace and help in improving the infrastructure. 

It will also advance cooperation in local equipment manufacturing and industrial capacity, he added.