RTRWL Nears Financial Closure for Rs 2,180-Crore Forged Wheels Project

Ramkrishna Titagarh Rail Wheels Ltd (RTRWL), a joint venture between Ramkrishna Forgings Ltd and Titagarh Rail Systems Ltd, is close to securing financial closure for its Rs 2,180-crore forged wheels project. The project, located in Chennai, aims to start Phase I operations by April 2026, supplying wheels to Indian Railways.

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

Financial closure, a significant milestone in project financing, indicates that all conditions of the financing agreement are fulfilled and fund availability is imminent.

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

Located in Chennai, RTRWL's greenfield facility will have an initial installed capacity of 228,000 wheels per annum. The project will be executed in two phases, with Phase I costing Rs 1,810 crore and Phase II Rs 370 crore. Funding will be derived from debt and equity in a 70:30 ratio, explained Chaitanya Jalan, whole-time director of Ramkrishna Forgings.

RTRWL, a 51:49 JV, plans to secure around Rs 1,530 crore in debt, benefiting from a stable rating from Ind Ra for its term loan. Equity capital of Rs 650 crore will be infused progressively based on the parent companies' shareholding.

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

'The initial focus will be on meeting Indian Railways' requirements as per the wheel supply agreement, with the remaining capacity addressing private sector demand in domestic and export markets,' Jalan added.

As part of the 'Atmanirbhar Bharat' initiative, RTRWL will supply up to 80,000 wheels annually (35% of installed capacity) to Indian Railways under a 20-year agreement with the Ministry of Railways.

(With inputs from agencies.)