India's First Auto Rail Sidling Opens at Maruti Suzuki Plant

12 Mar 2024 , 03:45 PM

PM Modi officially opened Maruti Suzuki’s first car in-plant railway siding project in Gujarat on March 12. The project is located in the Mehsana district of Gujarat, in Hansalpur. Virtually speaking, Modi launched it at an event in Ahmedabad.

Additionally, PM Modi launched and laid the cornerstone for ₹85,000 Crore in railway developments, starting with the Sabarmati area of Ahmedabad and ten new Vande Bharat trains. He also went to the Operation Control Centre of the Dedicated Freight Corridor (DFC).

The project is being carried out under the PM Gati Shakti initiative in association with MSIL, Indian Railways, and the Gujarati government. The project will set you back ₹976 Crore. The establishment of an in-plant railway siding by an automobile firm is a first for India, according to Rahul Bharti, Executive Officer for Corporate Affairs at MSIL.

With 49%, 29%, and 26% of the equity, respectively, Gujarat Railway Infrastructure Development Corporation (GRIDE), Gujarat Industrial Development Corporation (GIDC), and MSIL participated in the formation of Bahucharaji Rail Corporation Limited (BRCL), a special purpose vehicle that undertook the project.

Notably, the Ministry of Railways and the Gujarati government jointly own GRIDE. Maruti Suzuki was the only company to build the railway line inside the Bahucharaji facility, and it cost ₹105 Crore.

Through the project, Maruti will reduce the number of truck trips, fuel consumption, and carbon emissions by 1,650 tonnes yearly by using trains to transport finished cars from 26% to 40% of the total.

According to a business representative, this action will help lower the company’s carbon impact and advance sustainable practices in the automotive sector.

With a current parking capacity of 800 automobiles that may be increased to 3,000 cars, the railway siding has the ability to dispatch 300,000 cars annually. Maruti Suzuki has already shipped about 1.8 million automobiles by train as of February.

The spokesperson continued, “This switch to rail transport has the potential to reduce traffic and streamline the movement of goods.”

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