Is Ramkrishna Titagarh Rail’s Rs 2,180 Crore Forged Wheels Project on Track for Financial Closure?

Ramkrishna Titagarh Rail Wheels Ltd (RTRWL), a joint venture between Ramkrishna Forgings Ltd and Titagarh Rail Systems Ltd, is close to finalizing financial closure for its Rs 2,180-crore forged wheels project, according to a top company official.

Financial closure marks the stage where all conditions of a financing agreement are met, and the availability of funds becomes imminent.

“The project is progressing well. The company has secured statutory clearances and is in the final stages of achieving financial closure,” said Prithish Chowdhary, RTRWL board member and Titagarh Rail’s Deputy Managing Director, to PTI.

RTRWL’s new manufacturing facility in Chennai is set to have an initial capacity of 228,000 wheels per year.

“The project will be executed in two phases – Phase I, costing Rs 1,810 crore, and Phase II, costing Rs 370 crore. Funding will come from a combination of debt and equity in a 70:30 ratio,” stated Chaitanya Jalan, whole-time director of Ramkrishna Forgings.

RTRWL, a 51:49 JV, plans to secure around Rs 1,530 crore in debt, having received a stable rating from Ind Ra for its term loan. Equity capital totaling Rs 650 crore will be progressively infused based on the shareholding of the parent companies as construction advances, according to company officials.

Phase I operations are scheduled to commence in April 2026 with an installed capacity of 114,000 wheels per annum. Phase II will add another 114,000 wheels per annum and begin operations by 2028-29.

“The company will initially prioritize fulfilling the requirements of Indian Railways as per the wheel supply agreement program, with the remainder addressing demand from private players in both domestic and export markets,” said Jalan.

Under an agreement with the Ministry of Railways, RTRWL will supply forged rail wheels – up to 80,000 wheels per annum (35% of installed capacity) – over 20 years as part of the ‘Atmanirbhar Bharat’ initiative.