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Chinese firm setting up metro coach plant in Andhra Pradesh, to invest Rs 350 crore

Chinese rolling stock and components conglomerate CRRC Nanjing Puzhen is setting up its metro coach manufacturing plant at Sri City in Andhra Pradesh at an initial investment of around Rs 350 crore.

The plant, for which the ground breaking ceremony was held recently, will be built on a plot of 45.3 acre and will be commissioned by the year-end. The project, aimed at generating employment for over 500 people, will manufacture rolling stock (coaches) for metro projects by Bengaluru Metro Rail Corporation (BMRCL), Delhi Metro Rail Corporation(DMRCL), Mumbai Metropolitan Region Development Authority and Chennai Metro Rail Corporation (CMRCL).

The company has already bagged contract for supplying 216 metro cars for BMRCL project, with over 75% local manufacturing and over 50% local content. CRRC India, the subsidiary of the Chinese parent, will increase the local manufacturing to 90% in future projects.

Furthermore,by playing an active role as world factory of CRRC, the Sri City plant will undertake export order to West Asia and Africa in future.

Zeng Yao Zheng, chairman, CRRC India, said that they had preferred Sri City to locate their production unit as it is one of the best and well-planed industrial hubs in India. CRRC India is committed to serve the socio, economic development of the local area, and to actively explore the ‘five locals’ model, namely, local operation, localised procurement, local service, local manufacture, and local employment. “With the implementation of this unique model, there will be a positive impact on economic development of the region, we are very eager to serve India with our products,” he added.

With the upcoming Chinese company’s unit, Sri City will be home to two major metro rolling-stock manufacturing units, such as Alstom and CRRC which will be supplying 70 to 80% of the requirements of metro projects in the country.

Source
financial express
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