RVNL, Texmaco joint venture set to operationalise by Nov to boost rail infrastructure

New Delhi, Sep 4 (PTI) Rail Vikas Nigam Limited and Texmaco Rail & Engineering Ltd, which recently signed a joint venture agreement to develop India's next-generation railway ecosystem, will incorporate a new company by November, an official said.

"Following the signing of the JV agreement, we are, as the immediate next step, working towards finalising the incorporation of the new company by completing the statutory formalities and regulatory approvals," Manish Agarwal, principal executive director (mechanical) at RVNL told PTI.

"We aim to operationalise the new company by November 2025 so that it can begin contributing to upcoming railway projects in India and abroad," he added.

According to Agarwal, parallelly, both partners will work on identifying priority projects and business opportunities.

"For the new entity, we have a few names in consideration, we will share it with you soon, he said when asked if a name had been finalised.

RVNL, a Navratna central public sector enterprises under the railway ministry, and Texmaco, part of the Adventz Group and a leader in rail manufacturing, will jointly design, manufacture, and maintain freight wagons, passenger coaches, locomotives, metro coaches, and trainsets.

In addition, the partners will bid for engineering, procurement, and construction projects for the railway and allied sectors - both domestic and internationally - and will also manage workshops, depots, and sheds.

Agarwal stated that the total planned investment for the JV is Rs 200 crore, with an initial infusion of Rs 10 crore to commence operations by both the patterns.

He added that Texmaco will use its existing manufacturing facilities in India to kickstart operations and at the same time the JV will evaluate the need for additional facilities in line with business requirements and future expansion.

When asked about the rationale for the joint venture, Agarwal said that it combines RVNL's strong execution track record in large-scale railway projects with Texmaco's expertise in manufacturing rolling stock and railway equipment.

"Together, we aim to address the evolving needs of the Indian Railways and create a competitive platform capable of delivering end-to-end solutions," he said.

When asked whether the current supply of rolling stock is unable to meet Indian Railways' demand, Agarwal said, "With the Indian Railways' ambitious plans for expansion, electrification, and modernisation, demand for rolling stock and allied infrastructure is growing rapidly." "While existing manufacturers are contributing significantly, the scale of demand requires more capacity, innovation, and collaborative models. This JV is a step towards augmenting the ecosystem and meeting these rising requirements," he added.

According to Agarwal, while the primary focus will be on serving the fast-growing needs of Indian Railways, the JV will also explore international opportunities in line with RVNL's and Texmaco's capabilities.

"The idea is to position the company as a globally competitive player in the railway ecosystem," he said. PTI JP ZMN