Rail Vikas Nigam Limited (RVNL) and Texmaco Rail & Engineering Ltd. have signed a Joint Venture Agreement to partner up in rolling stock manufacturing, EPC projects, and allied infrastructure. With RVNL holding 51% and Texmaco 49%, the JV aims to create a comprehensive solutions provider for India’s growing railway ecosystem.
Introduction:
Rail Vikas Nigam Limited (RVNL), a Public Sector Undertaking under the Ministry of Railways, and Texmaco Rail & Engineering Ltd. (TREL), a leading player in rolling stock and allied infrastructure, have entered into a strategic Joint Venture Agreement (JVA). The agreement was signed in the august presence of Shri Pradeep Gaur, Chairman and Managing Director of RVNL, alongside directors and senior officials from both organizations.
This partnership signifies a landmark step in the railway sector, bringing together the government-backed execution expertise of RVNL and the strong manufacturing and engineering capabilities of Texmaco. Together, the joint venture seeks to develop India’s next-generation railway ecosystem by combining infrastructure development, manufacturing, and global outreach.
Key Objectives of the Joint Venture:
- Rolling Stock: Manufacture, supply, and maintenance of freight wagons, passenger coaches, locomotives, metro coaches, trainsets, and specialized equipment.
- EPC Projects: Undertaking engineering, procurement, and construction contracts in railway and allied infrastructure sectors.
- Bidding and Tenders: Actively participating in domestic and international competitive bidding, both open and nomination-based.
- Workshops & Depots: Establishing, operating, and maintaining railway workshops, depots, and sheds to support large-scale operations.
- Geographical Expansion: While the primary operations will be in India, the JV has the flexibility to explore international markets as opportunities arise.
By encompassing these diverse domains, the JV positions itself as a comprehensive rail and infrastructure solutions provider, aligned with India’s vision of modernizing its transport network.
Shareholding and Governance:
The shareholding structure has been defined with RVNL holding a majority stake of 51% and Texmaco holding 49%. This arrangement ensures strategic leadership from the PSU while leveraging Texmaco’s deep industry expertise.
The agreement also lays down clear provisions on governance, including capital structure, board composition, quorum, related party transactions, and compliance with statutory and regulatory requirements. These measures ensure transparency, accountability, and long-term sustainability of the JV operations.
Significance of the Partnership:
The JV combines the strengths of two industry leaders:
- RVNL, with proven expertise in project execution, financing, and rail infrastructure development under the Ministry of Railways.
- Texmaco, known for its decades-long experience in rolling stock manufacturing, design, and supply to both domestic and global markets.
Together, they aim to accelerate India’s railway modernization goals, contribute to the “Make in India” initiative, and enhance the country’s global competitiveness in the rail sector.
Conclusion:
The RVNL-Texmaco joint venture is a significant step towards developing India’s railway infrastructure. By binding manufacturing capabilities with execution expertise, the JV will not only reinforce indigenous production but also lead to more global opportunities, setting the stage for sustainable growth in the railway sector.
Source: RVNL – Press Release | Images Credit: RVNL
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