State-run Steel Authority of India Limited, also known as SAIL, would supply rails for the major railroad network expansion plan in Iran.
SAIL has bagged an export contract to supply about 100,000 tons of rails to Iran from its flagship entity Bhilai Steel Plant, which has been the sole producer of rail for the company, Indian English-language daily Business Standard reported.
The export order is for 18-meter rails. The plant supplies world-class rails to Indian Railroads in lengths of 13 and 26 meters from its Rail Mill, besides 130- and 260-meter rails from its Long Rail Complex.
Since BSP is not producing the 18-meter rails demanded by Iran, it is installing new equipment to facilitate the supply.
“Special equipment is being procured from overseas suppliers for creating new facilities in the existing Rail and Structural Mill of BSP,” a company spokesperson said.
Besides a new Hot Stamping Machine from Germany, BSP is procuring a new NDT (Non-Destructive Testing) facility from Austria.
The new NDT facility would include online straightness measurement, e profile measurement and twist measurement equipment.
The Rail Mill and the Long Rail Complex are already equipped with state-of-the-art facilities for rail finishing and testing, including hot stamping and NDT facilities.
The plant had earlier exported steel to Iran in 1967, 1969 and 1976. In all, 275,000 tons were dispatched from BSP.
Iran is now planning the modernization and major expansion of its rail network. It plans to invest $25 billion over the next 10 years in the rail projects.
The investment is expected to increase its railroad tracks from the current 15,000 km to 25,000 km by 2025.
