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Ukraine war: Major rail factories miss production targets due to supply chain disruptions


September 4, 2022

Source: Economic Times Photo / Image Source: Unsplash, Polina Rytova


Synopsis

According to documents, a recent performance review of the Railway production units found the manufacturing of these essential components was way below the proportionate target for the first four months of this fiscal.

Due to the supply chain disruptions caused by the Ukraine crisis major production units of Railways have missed their manufacturing targets of coaches, wheels, locomotives and other rolling stock for the first four months of this fiscal.


According to documents accessed by news agency PTI, 'the manufacturing of these essential components was way below the proportionate target for the first four months of this fiscal.'


In a review meeting chaired byRailway Board Chairman and CEO VK Tripathi with the general managers of the factories the issue of production shortfall till July 25 was raised.


The issue is more concerning because Mainline Electric Multiple Unit (MEMU) and EMU trains are deployed on short and medium-distance routes, and on those connecting urban areas with suburban localities.


The production of MEMU rakes (formation of coupled coaches that makes up a train, minus the loco) has been "abysmally low" which is a serious cause of concern and needs to be addressed immediately, the documents read.


Concerns over the short supply of MEMU/EMU electric propulsion system, 60 KVA transformers and switch cabinets were also raised at the meeting


The GMs were urged that such issues be "addressed immediately" so as to ensure there is no "shortfall in production".


Short supply

According to Railways, the short supply of "electrics" (electrical components) by propulsion supplier which, in turn, was triggered by an insufficient supply of semiconductors due to the worldwide crisis of semiconductors is the main reason behind the shortfall in production of MEMU and EMU coaches.


"Large scale orders given by the railways for electrics could not be honoured by the suppliers. The industry also couldn't come up to meet the increase in demand of electrics by the Railways. This is likely to improve in the remaining months of this fiscal, and in remaining months, the production will be ramped up," the documents said.


The production of LHB passenger coaches for long-distance trains during the same period was also below the proportionate targets -- the ICF produced 20.4 per cent fewer coaches, the RCF was 10.2 per cent behind, and the MCF almost 56 per cent.


Ukraine Factor

The shortfall in the production of LHB coaches was largely due to the disruption in supply chain of forged wheels which was mostly being imported from Ukraine, which has been embroiled in a war with Russia since February, said the Railways said in response to queries.


"A ship loaded with wheel discs was stranded in Ukraine. This problem has now been resolved. All the shortfall will be made good during the remaining months," the Railways said.


According to documents, the July meeting discussed how the short supply of propulsion system, traction motor and locomotive wheels was acting as a major hinderance in achieving the production targets.


"It was noted that despite not meeting supply commitments, fresh orders are still being placed to the same firms with extremely high delivery period," the documents showed.


Lagging behind

The production of wheelsets and locomotives are also lagging behind. The production of wheelsets by the Railway Wheel Factory is 21.96 per cent behind the proportionate target and that by Rail Wheel Plant, Bela, 64.4 per cent off the target.


The production of locomotives during this fiscal till July is around 28 per cent lower than the set targets, the document showed.


As per documents, 40 locomotive failures have been detected within 100 days till June, and called for punitive action in such cases.


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