News
Kalugaputmash, JSC (KPM, an enterprise of Sinara Transport Machines Holding) and the Ministry of Industry and Trade of the Russian Federation have signed an agreement on implementation of a program for enhancement of corporate competitiveness (CCP). The aim of the program is to meet the project requirements for the production and delivery of track equipment to the Republic of India.
The agreement will allow STM Holding to gain a number of benefits, including a possibility of getting loan funds at a rate that is 4.5% point lower (than basic rates) at any commercial bank approved by Ministry of Industry and Trade of the Russian Federation. In addition, the current agreement significantly the process of certification and homologation of products in foreign markets significantly by letting the participating enterprises to fast-track these procedures. The document expires in one year.
The agreement applies to the contract with Indian Railways signed in 2020, in which the enterprise committed itself to deliver 1 pilot and 18 series BRM-01 vehicle sets. This equipment will be used for the production of BRM (ballast regulating and leveling machine) track equipment. This machine is designed to plan and redistribute freshly dusted or cleaned, non-congealed ballast at construction, all types of repairs and current maintenance of the railway track. The finished products will be assembled in the Republic of India, according to “Make in India” National Initiative, which assumes at least 50% of products localization. The project will be implemented in 2022-2023.
According to Valery Savchenkov, CEO of Kalugaputmash, the agreement with the Ministry of Industry and Trade will enable the company to successfully meet all contractual obligations. “We are grateful to the Government for the support measures, I personally have no doubt that the benefits provided by the agreement will prove very effective for our plant and will help us to implement the project in India. Besides, all the production improvements introduced in relation to the CCP conditions will be actively used by us after the completion of this project,” said Valery Savchenkov.
As part of the agreement, KPM is committed to meet certain requirements of the corporate competitiveness program, including: bringing a complete package of design documentation for BRM-01 track machine in accordance with Indian Railways technical requirements, creation of additional production facilities at KPM sites, acquisition of additional processing equipment and tooling, as well as the purchase of components for a pilot sample of this machine. In addition, Kalugaputmash will be directly involved in the establishment of the set assembly site on the territory of the Indian Technological Partner, in direct delivery, installation and assembly of track machines and will also conduct the acceptance tests.
It’s worth reminding that STM Holding has a long history of interacting with Indian Railway companies. Thus, in January 2021, the first batch of vehicle sets arrived at Chennai Port, for the production of WST type track vehicles (WorkSite Tamper, track renewal machines). At present, there are also a number of machines manufactured by STM operating on the tracks of Indian Railways, including stamping cranes and dynamic track stabilizers.
The Corporate Competitiveness Program (CCP) is an organization's deployed plan aimed at increasing competitive advantage, production volumes and sales of products. This is the initiative of the Russian Ministry of Industry and Trade (in participation with the Russian Export Center Group and, in particular, the Russian Export Credit and Investment Insurance Agency and the Eximbank of Russia).
