The plan suggests that each production unit with a chief executive officer will function as an individual profit centre, reporting to the board and chairman and managing director of the new company. Once the Cabinet clears the proposal, MCF Rae Bareli may become the first unit to come under the new entity.
Subsequently, other units may also come under IR Rolling Stock Company in a phased manner.
According to a source close to the development, Railway Board chairman V K Yadav has already written to various production units citing this among the priorities during the first 100 days. The measure may help the existing production units get wider market access to state-of-the-art technology and achieve superior operational efficiency. It could also promote exports.
As part of the 100-day strategy, the board is also planning re-development of at least 50 stations out of a total of 500 at an investment of Rs 1.1 trillion. Getting approval for elimination of 2,568 level crossings on the Golden Quadrilateral and diagonals is also on the government priority list. An investment of about Rs 50,000 crore is expected for this in the next four years.