Lok Sabha Question No. 5079 (UNSTARRED), answered on 2019-07-24
Subject: Corporatization of Production Units
Ministry: RAILWAYS
Asked by: Deepak Baij, Su Thirunavukkarasar

## GOVERNMENT OF INDIA MINISTRY OF RAILWAYS

## LOK SABHA UNSTARRED QUESTION NO.5079 TO BE ANSWERED ON 24.07.2019

## CORPORATIZATION OF PRODUCTION UNITS

## †5079. SHRI DEEPAK BAIJ: SHRI SU.THIRUNAVUKKARASAR:

Will the Minister of RAILWAYS be pleased to state:

- (a) whether  the  Government  is  considering  to  corporatise  some production units of Railways and if so, the details thereof;
- (b) whether these are currently unable to function according to their capacity;
- (c) if  so,  whether  some  changes  would  be  made  in  the  service conditions of those employees if the said units are converted into corporation;
- (d) the details of those production units which are under consideration for conversion into corporation along with the total number of workers/ labourers currently working in them; and
- (e) whether  these  units  are  in  deficit  or  in  profits  and  if  so,  the details thereof?

## ANSWER

MINISTER OF RAILWAYS AND COMMERCE & INDUSTRY ( SHRI PIYUSH GOYAL )

(a) to (e) A statement is laid on the Table of the House.

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STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS   (a)  TO  (e)  OF UNSTARRED QUESTION NO. 5079 BY SHRI DEEPAK BAIJ AND SHRI SU.THIRUNAVUKKARASAR  TO  BE  ANSWERED  IN  LOK  SABHA  ON 24.07.2019 REGARDING CORPORATIZATION OF PRODUCTION UNITS.

- (a) Government  has  envisaged  preparation  of  an  action  plan  for corporatization  of  the  Rolling  Stock  Production  Units.  Existing Production Units are expected to become part of this structure in a phased manner. This is expected to be attended with the following benefits:
- (i)
- (ii)
- State-of-the-art technology and modernization
- Managerial autonomy
- (iii) Superior operational efficiency due to better Management practices
- (iv) Export capability
- (v) Increase MSME business
- (vi)
- Employment generation
- (vii)
- Better benefits to employees
- (viii) Making  India  an  international  hub  for  rolling  stock manufacturing.
- (ix)
- Attract investments.
- (b) As  against  total  capacity  of  500  locomotives  and  4200  coaches, Production Units manufactured 734 locomotives and 6076 coaches in  the  year  2018-19.    This  shows  that  the  performance  of  these Units is very good.
- (c) No final decision has been taken in this regard.  However, if at all changes  are  to  be  made,  these  changes  shall  provide  better benefits  to  employees  as  compared  to  existing  scenario.    The process  will  involve  discussions  with  all  stakeholders  including employees.

- (d) The  total  number  of  employees    currently  working  in  Production Units as on 01/07/2019 are as under:
- (e) The  question  of deficit or profit does  not arise as Railway Production Units almost entirely work for railway's internal requirement on transfer cost basis.

| Production Units                                  |   No of Employees |
|---------------------------------------------------|-------------------|
| Integral Coach Factory (ICF), Chennai             |              9940 |
| Rail Coach Factory (RCF), Kapurthala,             |              7581 |
| Modern Coach Factory (MCF), Raebareli             |              2198 |
| Chittaranjan Locomotive Works (CLW), Chittaranjan |             10955 |
| Diesel Locomotive Works (DLW), Varanasi           |              5798 |
| Diesel Loco Modernisation Works (DMW), Patiala    |              3368 |
| Rail Wheel Factory (RWF), Bangalore               |              1556 |

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