A DSP team will inspect the wheels shortly to ensure the capability of HEC in machining locomotive wheels. The heavy engineering company has completed the machining of 12 wheels, blanks of which were supplied by DSP.

Indian Railways, which imports locomotive wheels from the East European countries, has decided to procure it domestically. As DSP is the sole indigenous source of loco wheels, the railways has started negotiations with the former for its supply.

According to a SAIL source, the railways is interested in purchasing locomotive wheels from DSP on a regular basis. At the outset, they want to buy 20,000 locomotive wheels. Since DSP does not have sufficient machining capacity for locomotive wheels, it needs tie-up with a competent engineering unit for the job. Accordingly, DSP had floated domestic tenders for this job some time in June this year. Several engineering outfits, including HEC and Simplex had submitted their bids.

Considering HEC's past relations with DSP, the SAIL plant is likely to tie up with the PSU for the machining job.

Meanwhile, it is reliably learnt that HEC wants to sign a memorandum of understanding with DSP for the locomotive wheels assignment followed by an agreement. The source said that HEC will undertake the machining job in its heavy machine tools plant (HMTP) where some CNC machines will have to be installed. As the company is fighting for its revival under orders of the Board for Industrial & Financial Reconstruction (BIFR), further investment on infrastructure for machining locomotive wheels will be difficult for HEC. In all probability HEC may ask DSP to provide some money for the installation of CNC machines. The source said that HEC was likely to raise the point that DSP should decide on their investment amount on the basis of the number of CNC machines to be installed at the HEC plant to meet orders from DSP.