1

Report of Six Months Industrial Training

Required for award of Bachelor of Technology at

GIANI ZAIL SINGH

PTU Campus, Bathinda
(Established by Govt. of Punjab)

Training Period: June 05 to Dec 03

In

BWECL
Bharat Wagon & Engineering Corporation limited
(Govt. of india undertaking-ministry of
Railway)

Submitted By:-

Submitted To:-

MANISH KUMAR
UNI. ROLL NO-100311129897
Mech. (2k10)

Mechanical Engg. Dept.

INDEX
COMPANY
PROFILE...................................................................................05
ABOUT BHARAT
WAGON........................................................................06
FIANANCIAL PERFORMANCE OF THE
ORGANISATION............................08
PRESENT POSITION OF
ORGANISATION..................................................10
ABOUT FOUNDERS &
PROMOTORS........................................................15
HISTORICAL
BACKGROUND.....................................................................16
REHABILATION OF
WAGON.....................................................................19
SELLING WITH INDIAN
RAILWAY.............................................................21
MARKETING OF RAW
MATERIAL.............................................................26

PROCES OF
SELLING.................................................................................28
ORGANISATIONAL
STRUCTURE................................................................33
PRESS & SMITHY
SHOP.............................................................................58
CUTTING & WELDING
SHOP.....................................................................62
DRILLING
SHOP.........................................................................................65
MACHINE
SHOP........................................................................................68
FOUNDRY
SHOP........................................................................................72
WAGON ASSEMBLY
SHOP.........................................................................76
FINISHING
SHOP........................................................................................77
TEMPLATE
SHOP........................................................................................78
SCRAP MEANING &
DDEFINATION.......................................................79
LIST OF SCRAP MATERIALS PRODUCED IN BWEL
MUZAFFARPUR.............80
SCRAP MANAGEMENT AND
IMPORTANCE................................................84
VARIOUS LOCATIONS FOR SCRAP IN SCRAP
DEPOT...................................87

TERMS AND CONDITIONS OF AUCTIONS SALE OF SCRAP BWEL

MZFF........88
SCRAP MANAGEMENT SYSTEM
(SMS)........................................................93
TARGET.........................................................................................
..............96
CONCLUSION...........
.......................96
BIBLIOGRAPHY..............................
.....................97

COMPANY PROFILE

Bharat Wagon is an engineering Industry commanding very good reputation and

having decades of experience with two manufacturing units in Mokama &
Muzaffarpur in the state of Bihar. Our both units have been accredited with
ISO-9001:2000 Quality management System Standards for manufacturing of
wagons. The product profile of Bharat Wagons and the enriched experience
reveal the credibility of our company and the capability of our skilled personnel
that have brought laurels to the organization.

BWEL manufacturers railway wagons, sugar mill machineries &

fabrications castings and miscellaneous project equipment. Railway wagons
comprise the bulk of the turnover of the company. The company has a wagon
manufacturing capacity of 2500 FWU p.a. Railway wagons are produced at the
Mokamah and Muzaffarpur units.

The wagons are catered to the Indian Railways and Ministry of Defence.
Some special purpose wagons are also produced according to specific
customer requirements. The unit at Mokamah s capable of producing only
board gauge units while the unit at Muzaffarpur is equipped to produce both
Broad gauge and Metre gauge units. In addition to railway wagons the units
are capable of producing all relevant wagon components. BWEL diversified
into turnkey project o 1979 as part of its diversification strategy and a
separate Project Division was set up in 1995. This division has successfully
executed a number of turnkey projects.

ABOUT BHARAT WAGON

Bharat Wagon & Engineering Company Limited (BWEL or the Company)
is a subsidiary of Bharat Bhari Udyog Nigam Limited (BBUNL) and is
engaged in the manufacture of Railway Wagons, Sugar Mill Machines & Steel
Fabrications and Project Equipment. The entire equity component of BWEL is
held by BBUNL and the company is under the administrative control of the
Department of Heavy Industries (DHI).
BUNL in consonance with DHI has decided to disinvest up to 74% or 100% of
its holding in BWEL in favour of a strategic/joint venture who would provide
technological inputs, marketing support, managerial skills and fresh funds and
such other assistance to BWEL as may be required to ensure healthy and
consistent financial performance. This would complement the existing strengths
of WHEL in possessing a team of skilled and highly experienced personnel and
a well-respected brand among wagon manufacturers in the country.
The administrative control of M/s BWEL was incorporated in 1978, by an Act
of Parliament, through the nationalization and subsequent amalgamation of two
erstwhile companies. Arthur Butler & Co. located at Muzaffarpur and
Britannia Engineering Works located at Mokamah. The decision of the
Government was driven by the industrial sickness in both the companies, which
had forced the government to take over their management. Subsequently, in
1983 a third unit was added at Industrial Estate (Bela) Muzaffarpur for
manufacturing LPG cylinders. In 1986, BWEL was made a wholly owned
subsidiary of Bharat Bhari Udyog Nigam (BBUNL) which is the holding
company for 9 nationalized companies in the heavy engineering sector and
comes under the auspicec of the Ministry of Heavy Industries.
BWEL is headquartered at Patna and has two regional offices in Delhi and
Kolkata. The company has manufacturing unit at Mokamah, Bela and
Muzaffarpur. The company is primarily engaged in the manufacturing of
Railway Wagons. As a diversification measure the company has also entered
into Steel Structures. Bridge Fabrications, Oil Tanks, Sugar Mill Equipment,
Canal Gates and other Misc, Project Equipment.
The Units at Mokamah and Muzaffarpur have received the ISO-9002
certification for wagon manufacturing. The company has achieved a number of

distinctions in the area of productivity including the Indira Gandhi Memorial

Award for Productivity in 1988, Rajeev Gandhi Memorial National Award
for productivity in 1990 and National Produtivity Councial Certificate of
Merit in 1993.
Bharat Wagon & Engg. Co. Ltd. (BWEL), Patna, a central PSE and subsidiary
of Bharat Bhari Udyog Nigam Ltd. (BBUNL) is transferres from the
Department of Heavy Industry, Ministry of Heavy Industries and Public
Enterprises to the Ministry of Railway w.e.f. 13th August, 2008 (AN).
Bharat Wagon & Engineering Company Ltd. (BWEL), was incorporated on 8 th
December 1978 as a Public Sector Unit by take over of two historical wagon
manufacturing units of Arther Butler & Co and Britannia Engineering Co, both
in Bihar at Muzaffarpur and Mokamah. The third industrial unit was added to
the company in 1983-84 at Bela, Muzaffarpur for manufacture of LPG
Cylinders. In the year 1986 the company become a subsidiary of BBUNL,
Calcutta.
Corporate/Head Office
Bharat Wagon & Engg. Co. Ltd.,
C Block, 5th Floor,
Mauryalok Complex,
Dak Bungalow Road,
Patna 800001
Regional Offices :
1. Bharat Wagon & Engg. Co. Ltd.,
26 A, Barakhamba Road
New Delhi 110001
2. Bharat Wagon & Engg. Co. Ltd.,
C/O Burn Standard Co. Ltd.,
40, Strand Road,
104, Akashdeep Building,
4th Floor, Room No. 12,
Kolkata 700001
Factories/Works :
1.Bharat Wagon & Engg. Co. Ltd.,
Muzaffarpur Unit,
Muzaffarpur 842001

FINANCIAL
PERFORMANCE
ORGANIZATION

OF

THE

Under gazetteer of India notification dated 7th May 1973, the

company was taken over by the Government of India in Ministry
of industries first on 26th August, 1973. But, this was contested
by the management before High Court, Calcutta and the court
having ordered for maintaining status on 24 th August, 1973 and
takes over being stopped.
Again Government of India by separate notification V/s SAA
took over the management vide gazetteer notification No.
782(f) with effect from 14th December, 1973 but again it was
contested and Government succeeded and took the company
for four years & company started its production in September
1973 under supervision of Mr. A.L. Kochhar. On expiry of initial
period of four years the take over was extended by a fresh
notification. Managerial and supervisory staff afresh had been
recruited and all workers were brought on in their previous
position.
Again the company was nationalized w.e.f. April 1 st, 1978. On
December, 8th 1978 a new registered corporate body known as
Bharat Wagon and Engineering Company Limited under the
department of heavy industries, Government of India took over
it.
Notes on Account and Accounting Policy schedules 1 to 23 and
cash flow attached from part of the Account.
Profit and Loss Account for the year ended 31.03.2010
Rs. in Lakh
Income
Sales
Other Revenue
Increase/Decrease
Finished Goods & WIP
Total Income
Expenses

31.03.2010
1,540.80
40.83

31.03.2010
863.21
78.30

3.37
1,585.00

105.00
1,046.51

10

Consumption of Raw Materials &

1,117.18
613.56
components
Consumption of stores spares &
24.07
16.55
Loose Tools
Employs Remuneration and
878.54
846.37
Benefits
Excise Duty
3.25
0.00
Power & Fuel
190.29
152.53
Other Expenses
74.75
61.45
Interest
1,179.49
1,002.15
Depreciation
44.16
50.68
Total
3,511.73
2,743.29
Profit/(Loss) for the year before
1,926.73
1,696.78
adjustment
Period Income/(Expenses)
4.88
474.83
Provision
78.08
159.69
Extra Ordinary Iron (VRS)
478.65
478.65
Provision Written Back
0.00
0.00
Net Profit/(Loss) for the year
2,488.34
2,809.95
before Income Tax
Provision for Income Tax
0.00
0.00
Net Profit/Loss after Income Tax
2,488.34
2,809.95
Loss brought forward from
10,389.90
7,579.95
previous year
Balance carried to Balance sheet
12,878.24
10,389.90
Notes on Account and Accounting Policy schedules 1 to 23 and
Cash Flow attached from part of the Account.
Fixed Assets
( As on 31.03.2010 )
Particular

( value in lakh )

Buildings (Residential )

21

Electrical installation & Equipment -

12

Land

Plant & Machinery

Railway siding

12
-

66
40

11

Tube well

08

Vehicle

1.25

Total

160.25

CHANGE IN WORKING CAPITAL AS ON 31.03.2010

Particular
Current Liabilities
Sundry Creditors
Advances from Customers
Other Liabilities
Interest Accured Payable
Total
Sundry debtors
Cash in hand & at bank
Loans & Advances
Stock
Sales
Total

31.03.2010
(Rs. in Crore )

31.03.2010
( Rs. in Crore )

3
6.5
19.35
4.5
33.35
2.75
3.65
2.90
0.43
5.5
14.78

6.25
11.25
15.8
5.20
38.50
2.15
4.30
2.50
0.48
8.60
18.03

Present Position of the

Organization
Bharat Wagon and Engineering Company Limited is a new
name of M/S ARTHUR BUTLER COMPANY LIMITED located at
muzaffarpur under the Bharat Wagon Engineering Company
Limited. Other unit at Mokama and Bela industrial Estate,
Muzaffarpur was also incorporated for administrative purpose.
The company developed with the industrial growth and modern
industrial development in northern India. The started to sugar
mill machineries and other agricultural, pioneer in the field of
civil engineering i.e. manufacturing of standard of products of
screw pile steel bridges and steel fabrication work. The scenario
of present Positions (strengths) of the company are shown with
the help of following presentation :-

12

A. Present Manpower Position of the Company :Manpower position means the number of employees employed
in an organization. Manpower position created in an industry by
passing through various stages of manpower planning. Planning
is important as it helps to determine future personnel needs,
surplus or deficiency in staff strength is as a result of absence
or defective manpower planning enables an enterprise to cope
with changes in competitive forces, markets technology,
products and Govrnment regulations. Manpower position
provides essential information for designing and implementing
essential personnel movement ( recruitment, selection,
transfer, promotion, lay off ) and the significance of manpower.
We can take a broad glimpse of manpower position by
observing the following data.
B. Present Wage and Salary Structure
Wages are settled with the negotiation between the
management and the union of the company. The consultating
authority of the settlement is LABOUR COMMISSIONER. It is
tripartite settlement, the Wages and Salary of BWEL,
Muzaffarpur effective from January 1992 is given bellow :-

Category

Designation
General Manager
Dy. General
Manager
Chief Manager

Grad Pay Structure

e
XIV
8,250-300-10,050
XIII
7,500-300-9,900
XII

Manager

XI

Dy. Manager

Asst. Manager

IX

7,000-275-8,100-3009,600
6,500-250-7,500-2759,425
5,400-225-6,300-2509,050
4,800-200-5,800-255-

13

8,275
Executive
VIII
4,000-175-7,150
Supervisor Asst. Engineer
VII
3,200-110-3,970-120y
5,290
Sr. Supervisor
VI
3,000-105-3,735-1105,055
Supervisor & Other V
2,800-90-3,430-1004,930
Workmen Highly Skilled
IV
1,875-30-2,025-35& Staff
2,200
Skilled
III
1,850-26-1,980-302,130
Semi Skilled
II
1,825-22-1,935-262,065
Unskilled
I
1,800-18-1,890-222,000
st
Pay Scals are un-revised (Due from 1 Jan. 1997).

C. Present Fringe Benefits

The team fringe benefits provided to employee in addition to
the compensation paid in the form of wage and salary. Different
terms are used to denote fringe benefits. They are welfare
measures, social security measures, supplement sub-wages,
employees benefits etc. Thus, fringe benefits are monetary and
non- monetary benefits given to the employee in the
organization.
The term fringe benefit cover bonous , social security
measures, retirement benefit like provident fund, gratuity,
pension, workmens compensation, housing, medical, canteen,
co-operation, credit, consumers stores, educational facilities,
recreational facilities, financial advice and so on. Abovementioned fringe benefits are provided to the employees of
BWEL.

D. Position of the Personnel Department

14

As indicated in the administration set up of Bharat Wagon and

Engineering Company Limited, Muzaffarpur unit, personnel
department is having one In charge P& A department and looks
after the job of welfare officer as provided under the factory
Act.
As a welfare officer employees welfare measures & other
activities such as residential facilities, final settlement of
retirement and death cases. The In charge is directly
responsible to the Management.
The personnel department of this company has set for itself
certain objectives within the framework of the policies. The
important functions of the personnel department of this
company are as given below :( i ) To recruit the talent and skill available and increase
development at a faster rate.
(ii) To develop faster system of appraisal and to advice on the
provision of maximum work satisfaction through fair treatment
and opportunity for constructive work.
(iii) To attach constructive and achievement oriented
management.
(iv) To create a congenial environment where the employer &
employee will work on a co-operative basis in order to achieve
organizational goals and objectives.
(v) To strengthen employee-employer relationships and build
cordial relations between them.
(vi) To formulate rules and regulations for the organizations for
its smooth functioning.
(vii) To implement all the major functions properly.
(viii) To maintain personal files of the employees.

E.

Present Productivity Ratio of BWEL

15

The present productivity ratio of BWEL is quite satisfactory. In

the year 1994, the production of railway wagon was 507.5 FWU
and it kept on increasing. During 1995, the production of
railway wagon (FWU) was 597.5 and ratio increases again
during 1996 and it reaches up to the production of 1,362.5
railway wagon. During 1997 its production was on peak. The
number of production of FWU was 1,443.5 but this ratio started
to decline and the productivity ratio came to 1,312 during
1998. During the year 1999-2000 the productivity ratio
declined measurably and come down 530 wagon only. This is
due to shortage in the order of railway board. But, in the year
2000, the production ratio very fabulously grown up & now the
production of FWU is not upto the mark. It is the sole effect of
BWEL to procure the excessive demand and to satisfy the
Railway Board with its own programme.
The unions and agree to increase production, productivity and
profitability by at least 50% of the present level for which joint
efforts would be made4 in the following areas :-

Suitable modifications in the existing incentive scheme

consistent with
the increase in productivity.
Efficient lending of raw materials and reducing wastages.
Improvements in yield and reducing operating costs.
Reducing energy consumption.
Improvements in house-keeping.
Improving quality in all production.
Continuously adopt better working practices.
Reducing unauthorised absenteeism.

MONTHLY PRODUCTION OF BWEL

16

Month
January
February
March
April
May
June
July
August
Septem
ber
October
Novemb
er
Decemb
er

2003
27
34
37
19
30
50
5
41
50

2004
36
57
59
22
56
54
55
25
25

2005
40
6
14
8
18
14
15
15
35

2006
22
15
6
8
8
3
15

2007
7
2
-

2008
20
20
20
10
15
15
5
15
15

2009
11
5
26
10
19
14
20
27
20

2010
20
25
20
20
25
9
-

28
53

30
22

5
26

5
-

6
12

7
5

17
20

56

13

20

10

25

ABOUT FOUNDERS AND

PROMOTERS
Bharat Wagon and Engineering Company Ltd. (BWEL) was
formed after nationalization of Britannia, Mokameh, Bihar and
Arthur Butler, Muzaffarpur, Bihar in December, 1979. The main
products of the company are Railway Wagons, screw pile
bridges, steel fabrication, Grey Iron Casting etc. Efforts are
being made by the company to diversify and develop other
product lines like oil tanks and other structural fabrication and
erection work at project sites, to reduce dependence on Wagon

17

orders. Government is exploring the possibility of joint venture

formation/disinvestments. The production of the company
during 2001-2002 is anticipated to be 117.44 crore.
The administrative control of M/s Bharat Wagon and
Engineering Company Ltd. (BWEL) , Patna a central PSE and
subsidiary of Bharat Bhari Udyog Nigam Ltd. (BBUNL) is
transferred from the Department of Heavy Industry, Ministry of
Heavy Industries and Public Enterprises to the Ministry of
Railway w.e.f 13th August, 2008 (AN).
Bharat Wagon and Engineering Company Ltd. (BWEL) was
incorporated on 8th December 1978 as a Public Sector Unit by
take over of two historical Wagon manufacturing units of Arthur
Butler & Co and Britannia Engineering Co, both in Bihar at
Muzaffarpur and mokameh. The third industrial unit was added
to the company in 1983-1984 at Bela, muzaffarpur for
manufacturing of LPG Cylinders. In the year 1986 the company
became a subsidiary of BBUNL, Calcutta.
Both Muzaffarpur and Mokameh Units are traditionally Wagon
manufacturing units. The layout, plant and machinery and
locations are ideally suited for t5his product. With a rich
experience of steel fabrication of over a half century, BWEL
possess almost all the desired infrastructural facilities over
heavy steel fabrication in house. A 3.16 MT Brake Press at
Mokameh is a rare asset in this direction. All the three
manufacturing works are self-sufficient in power by way of
Installation of capacity DG sets. Adequate open space is
available at both Mokameh and Bela Works. Operational ease is
made possible by location advantage of railway connectivity
close to the works.

HISTORICAL
BACKGROUND

18

M/S BHARAT WAGON & ENGINEERING COMPANY LIMITED is a

Government of India undertaking under the ministry of Heavy
Industry Department of bureau of public Enterprises, Govt. of
India. The Govt. of India undertaking was incorporated under
the company act, 1956 on the 4th day of December, 1978 with
an authorized capital of rupees five crores. Bharat Wagon and
Engineering Company Limited comes into being in terms of the
Britannia Engineering Company Limited (Mokama unit) and
Arthur Butler and Company Limited (Muzaffarpur) under the
acquisition and transfer of undertaking of Britannia Engineering
Company Limited. Mokama unit & Arthur Butler & Company
Limited (Muzaffarpur) with retrospective effect from 1 st of April,
1978.

The Britannia Engineering Company Limited Was incorporated

in 1917 with its registered office at Calcutta. It owned an
engineering unit at Titagarh (where it manufactured road
rollers. Jute mills machinery unit and other industrial unit) &
also a steel foundation at Titagarh and third unit , which was
set in 1960 at Mokama to manufacture railway wagons. The
engineering unit at Titagarh closed down in 1970 and on 22 nd
may, 1976 its management was taken over by the Central
Government & interested to M/S Westing House Farmers
Limited, Calcutta, a company being managed by the
Government has taken complete financial and managerial
responsibilities for managing the Titagarh unit. The Wagon unit
at Mokama closed down in March 1973. The Central
Government took over its management on 10 th February 1974
under the Industrial Development and Regulation Act and the
unit was reopened on 22nd of February 1974. When it was
closed down in March 1973 it employed 888 persons.
This labor was confirmed to then industrial establishment
located in North East region of India. It was not like a modern
industry as we see understanding about a unit today. It was
indigo industry based on agricultural product, which intricate

19

blue colour, a product of indigo cultivation by means of smaller

plants. In 2nd district gazetteer of Muzaffarpur district 1958,
Much encouraged by the remunerative aspect Mr. Arthur also
thought to have his permanent establishment somewhere. The
first did setup small shop that sheds with smithy devices
something at samastipur, then a central place of
communication during those days and then enthusiast Mr.
Butler also joined him and began working as two friends doing
the same business.
They could pull their resources and began working as partners
in course of time, their work expanded and the place proved in
sufficient to the requirement. They moved their place of
business from samastipur to Muzaffarpur (a place situated in
277 North latitude and 8524 East longitude is in the central
place of north Bihar) a few yards away from present location of
the factory. They began doing bigger volume of business and
the smaller firms fasts developed into shed. They went yards
away from present location of the factory. They began doing
bigger volume of business and the smaller firms fasts
developed into bigger shed. They went on adding to their small
unit, different sections and then their industrial venture took a
factory form.
Mr.L.S.S.O.Malley I.C.S. mentioned in the first district gazetteer
of Muzaffarpur district (1907) M/s Arthur Butler Company as
only engineering workshop registered under the factories act
having 107 employees on hand already started its industrial
activities as the only modern industrial world.
Mr. P.C. Roy writes in the 2nd district gazetteer of Muzaffarpur
district (1958) that in the last quarter of the 19 th century, the
development of the artificial days, which freely imported from
abroad, affected the prospect of the indigo industry severally
sit lost the ground. But the Arthur Butler venture being in the
form of the factory followed. Other industries. One more
advantage was with them that they were English people and

20

every industrial activities was being owned and managed by

the English people themselves.
Arthur Butler started a new line of business of making screw
piles having steel as superstructures there on which could be
easily installed, dismantled and shifted was the course changed
given by 1910. It expanded as bigger partnership concern.
By 1919, it was registered under joint stock Company Act as a
company and also fixed up its workshop at the present site of
the factory just adjacent to Muzaffarpur Railway station. Arthur
Butler and Company has been also famous for civil works and
they were experts in designing screw piles all the fabricated
steel bridge in Northern India stand over today as a symbol.
By 1925 when most of the factories used to import machines
from England even minor parts of the sugar industries, the
efforts of Arthur butler where credit worth of the management
development production from repair side of business
It was the year 1938 in which it used to pay heavy dividend to
its shareholders. During the 2nd world war it expanded so much
so that it could acquire a plant of its own which was used by Mr.
H.M. Wealthevall. It also expanded its employment roughly
about one thousand persons.
Managing agents changed after 1943, from Balmer Lawrie
Co.Ltd. to purchase the company. The English shareholder sold
their shares and virtually repatriated from India. The Bihar
Motor Service section was also closed and new line of repaint.
Railway goods wagon and managing agent.
The Bharat Brothers controlled the management, however, till
act for 1954, the management changed hands and Kakrania
and sonthalli as purchase the shares and owned the company
only small part of the share of the company were in the market
and it was easy for them to sell off the ownership. The two
groups formed a managing system which was obliged by virtue
of amendments to the India Companies Act, 1968. Since them it

21

began to be managed by a Board of 4 Directors consisting of

always the family namely Kakranias and Sonthallias.
During this period the Government decided to stop import of
railway goods Wagons and this gave big impetus to Indian
factories to develop wagon building. Arthur Butler Company
being ideally situated on the meter gauge railways head at
Muzaffarpur and doing the repairing railways.
Work till 1954 took advantage of the opportunity and it did
expand its workshop to take up the new railway job. In course
of time they brought suitable new machines and arranged to
build all types of railway wagons.
During the peak period, 1960-1965, it employed even about
1300 persons. In 1967 when the company faced the situation
during the general recession.

REHABILTATION OF WAGONS
We also have experts/engineers with extensive experience in
Rehabilitation and Modifications of Wagons and can take up
rehabilitation of ANY MAKE of railway freight wagons or
passenger coaches. We can assist your railways in transfer of
technology and imparting training for maintenance. To analyse
and review the extent of rehabilitation requirement, we can
send a team of expert engineers to customers place. The team
will work jointly with customers railways for assessment of the
work involvement and spares requirement. By investing only
one-third of the cost of a new wagon, one gets back a life of
round 10 years after the Rehabilitation.
(v) Product profile of the BWEL
At the present time, Bharat Wagon Engineering Company
Limited is one of the subsidiary of Bharat Bharti Udyog Limited
which has other subsidiary has a good liaison away i.e.

22

(i) Burn standard company.

(ii) Praith Waite and company limited.
(iii) Bharat Process and Mechanical Engineering Limited.
(iv) Lagan Jute Machinery Company Limited.

At the present time Bharat Wagon and Engineering Company

Limited has a target of an average 30 to 35 wagons per month.
It is producing Broad Gauge Freight Wagon. Wagon component
pressing, castings and fabrication works are being done here.
Casting jobs-grey iron casting up to 12 tonnes capacity.
At Bela works, oil tanks, heavy girdens, Transmission Towers
and other heavy fabrications works are being done. But now it
is closed.
The production and manufacturing chart of BWEL
Muzaffarpur unit are:Rolling Stock : Fright Wagon (Open Type) Box N
Fright Wagon (Covered Type) MBC
Fright Wagon (Flat type) BPN
Fright Wagon (Spl Purpose) BWTA
Casting Jobs
:
capacity per piece.

Grey Iron Casting upto 10 tonnes

Sugar Mill Machineries : Complete Rollers Reselling.

Filters Press Cystallizers Sulphus.
Furnale Condenser Conveyor Mill
Looping Mollassess and Mama pumpete
Defenale Road Trailer :

Defenale Tank Carrier

Trailer upto 20 MT Capacity

23

Coal Mining Equipment : Coal Tube Mine Cars Rope Way Bulket.
Screw Pile Bridness :
Tailer made Bridns with all relevant
component to suit the river breadth.
Steel Fabrication Work : Suitable for steel plants. Thermal
power plants, Oil Installation, Fertilizer units Railroads, Bridge
structure.
Transmission Towers and sub-stations structure :
Manufacturing and exertion of transmission towers and
sub-station structure.
Valuable Customer Wagon : Indian Railway, Ministry of Defence
Steel Fabrication
:
Road Construction Department,
Irrigation Department, H.E.C., BCCL, FCI, BHEL, Nagal Paper and
Pumps Mill, Eastern Railway.
C.I. Casting
: Sugar Mills of U.P., Bihar and Nepal,
U.P. State Electricity Board, Road Construction Department.
L.P.G. Cylinders
:
Indian Oil Corporation Ltd. Hindustan
Petroleum Corp. Ltd. Bharat Petroleum Corp. Ltd.
Pontoon Bridges
:
Naogachhia (Bhagalpur), Kataunjha,
Runisaidpur, (Sitamarhi), Bihar Pool Nirman Nigam, Patna
(Bihar)
At present Bharat Wagon is only manufacturing rolling stock. In
other words, We can tell that the Production of rolling stock is &
rest everything has been stopped.

SELLING WITH INDIAN

RAILWAY
Over the years the company has built a broad customer base in
almost all product categories. The primary customer for wagons

24

is the Indian Railways and about 98% of the revenue in this

area of BWELs business accrues from purchase of freight
wagons by the Indian Railways. The important customers for
the different products are as follows:
Product
Railway Wagons
Casting Jobs

Steel Fabrications

LPG ylinders and Fuel

Storage Tanks

Important Customers (Procurement)

The Indian Railways
Ministry of Defence
Sugar Mills in Uttar Pradesh, Bihar and
Nepal
Uttar Pradesh State Electricity Board
Road Construction Department, Govt.
of Bihar
Road Construction Department, Govt.
of Bihar
Irrigation Department, Govt. of India
Heavy Engineering Corporation, Ranchi
BCCL- Western Coal Fields
Railway and Road Bridge Structural
FCI, Barauni
Rampur Engineering Works
Bihar State Electricity Board
Nagaland Paper & Pulp Mills
Eastern Railways
Indian Oil Corporation Ltd, Hpcl and
Bharat Petroleum Corporation Ltd.

The principal customers by value are the Indian Railways, the

predominant customer, Bihar Rajya Pul Nirman Nigam Limited,
Numaligarh Refinery Limited, Bihar State Electricity Board and
Oil Companies like IOCL, BOCL and HPCL.
The order book position as on 1st September 2001 is given
below:
Product
Wagons

Order Book
Physical Order for FWU: 705
Order Value (Rs. Lakh): Rs.3666

25

New Wagon
Total Order Book

Order Value (Rs. Lakh): Rs. 111.13

Rs. 3777.13 Lakh

Raw materials in wagon manufacturing can be broadly

divided into two categories:
(a) DM components, being components, which are inspected by
the RDSO before they are supplied to us and
(b) Non-DM components, being low value components, which
are the procured locally and do not require RDSO inspection.
Common DM components include steel, bogies, coupler sets,
air brake equipment, air brake pipe, wheelsets, slack adjuster,
nylon bush, door check spring, bearing, twist lock, draw gear
(quick draw) and draw bar.
Principal raw materials for our mining machines are flat steel
products, such as steel plates. We normally source our entire
requirement from suppliers such as SAIL and TISCO. We also
require high tensile steel plates, which are sourced from dealers
of major companies in India or abroad. We require forgings and
castings, which we normally source from locally available
forging manufacturers in addition to manufacturing casting at
our in-house foundry. We have an arrangement with komatsu
Mining Germany (Demag) for supply of components and spares
required for heavy earth moving and mining equipment. We
import components such as hydraulics and gear boxes for our
heavy earth moving mining equipment from komatsu Mining
Germany, Rexroth, Carraro and also several other reputed
companies in India and abroad. We source our requirements of
cylinders and engines for our machines from indigenous
sources.
In the Railway Budget for 2008-09, it was announced that
Indian Railway will procure around 20,000 wagons. In addition
to demand from Indian Railways, demand for wagons from
public sector companies such as National Aluminum Company
Limited (?NALCO?), National Thermal Power Corporation Limited

26

(?NTPC?), Container Corporation of India Limited (?CONCR?),

etc. has also been picking up. Companies such as NALCO,
NTPC, etc. Procure wagons for their in-house utilization where
as CONCOR procures container flats for container
transportation purposes. The demand of wagons has further
been bolstered by the wagon Investment Scheme (?WIS?),
which was implemented by Indian Railway wef April 1, 2005.
Wheel sets are one of the most critical components in wagon
manufacturing and the approximate cost of wheel sets as a
percentage of the total selling price of wagon for non Indian
Railway customers is almost 30-35%. The prices of wheel sets,
are significantly dependent on prices in the international
market and their global demand and supply situation. To
manage the cyclical fluctuations in the prices of wheelsets, we
have developed relationship with a number of RDSO approved
vendors in countries such as China, Spain, Brazil and
Switzerland. We placed order with such vendors, based on our
outstanding order book position and based on the delivery
requirements of our customers. Due to significant price
fluctuation of wheelsets in the global markets and current
global shortage, we endeavour that our non-Indian Railway
customers? Open letters of credit against our purchase orders
with our approved vendors directly. In order to reduce the risk
of price fluctuation of wheelsets and to ensure continuous
supply of wheelsets for our production, we are planning to
setup an axle machining and wheelset assembly plant at an
estimated cost of Rs 129.33 mn. The assembly plant will have
an assembly capacity of 10,000-12,000 wheelsets per annum.
We believe an axle machining and wheelset assembly shop
would give us a cost advantage with respect to savings in
freight charges and would also give us greater operational
continuity.
Non-DM components such as horizontal levers and safety
plates, being low value components, are procured locally and
require no RDSO inspection. Suppliers of Non-DM components

27

are approved as per guidelines specified in our quality

assurance manual and in accordance with the requirements.
Railway Rolling Stocks, Components & Track Materials
BWEL is the largest Rolling Stock manufacturer in India. With
an annual production capacity of over 8600 Vehicular Units,
BSCL offers the following range of Railway Wagons.
Open Type Freight Wagons for transportation of Coal, Ores,
Minerals etc.
Closed Type Freight Wagons for transportation of all classes of
General Goods, Food Grains, Bagged Cement etc.
Bottom Discharge Open Ballast Hopper Wagon with automatic
unloading facility (suitable for bulk goods)
Special Leak Proof Wagon for Alumina & Cement (with
pneumatic discharge system direct from wagon to the
unloading point)
Milk Tank Wagon
Special Wagon for Liquefied Petroleum Gas (LPG)
Flat Wagon for Transportation of steels.
Crop Wagon for Transportation of scraps.
BSCLs foundry practice dates to the 18th century and today
with its modernised Steel Plant, Moulding Equipment, Electric
Arc Furnaces, Heat-treatment and Shot Blasting facilities, the
annual production of 15,000 MT covers finished Alloy Steel
Castings, Heavy Nihard and Mn Steel Casting and Crossing.
Maximum weight of castings that can be made is 4 MT.
The battery of Drop Stamping Hammers and Hydraulic Presses
with supporting machinerys including heavy die machining
facilities have enabled the Forge Division to produce customer
need based forging and pressings.
Maximum dimensions 450/R Bloom.

28

Maximum weight Drop Stamping: 40 Kg,

Plain Forging: 2.5 Tons
Starting from the raw mining to the finished product BSCL,s
Refractory Unit offers a one window solution for a wide range of
products basic bricks e.g. Mag. Chrome, Chrome Mag,
Magnetite, Chemically Bonded (Unburnt), Direct Bonded, Mag.
Carbon, Refractories for Copper, Cement & Glass and many
other Varieties.
BSCL is the preferred supplier for Steel Structurals for major
Rail and Road Bridges in India. Supplies have included
structural work for bridges over Indias widest Rivers: Ganga,
Krishna, Godavari, Hooghly and Bramhaputra to name a few.
Steel Frame Building Structures
Steel Plant Structural Work
Steel Plant Equipment
FACILITY PROVIDED BY INDIAN RAILWAY
New Delhi During 2009-10, the Indian Railway plan to acquire
18,000 new wagons against 11,000 in 2008-09. Announcing
this in Parliament today, the Minister of Railways, Mamata
Banerjee, said that there was a growing demand for wagons in
Indian Railways.
The ministry also proposes to take over the wagon units of Burn
Standard Co. Ltd. (BSCL) and Braithwaite & Co. Ltd. (BCL),
under the Ministry of Heavy Industries. During the year 200809, the Government released Rs 8-38 crore to BSCL, Rs 3.76
crore to BCL for modernization and production facilities.
During 2008-09, BSCL has registered a net loss of 199.92 crore
INR (Prov.) and a loss of 151-29 crore INR during 2007-08
(Actual). During 2008-09, BC has registered a net profit of 1.42
crore INR (Prov.) and a profit of 0.55 crore INR during 2007-08
(Actual).

29

The proposal to acquire 18,000 new wagon is good news for the
domestic wagon manufacturing firms.
VRS Natarajan, CMD, BEML felt that the budget was very
encouraging and would increase the business of coach builders
and manufacturers.
The minister also proposed premium freight service for
container movement with assured transit time and a mega
logistic hub alongside eastern and western dedicated freight
corridors.

MARKETING OF RAW MATERIAL

The wagon manufacturers are not unduly worried over supply
of raw materials such as steel and wheels by the Railways.
Some of the wagon manufacturers express their reservation
about the Railways plans to acquire the wagon units of Burn
Standards and to set up a new coach factory in Kanchrapara
(West Bengal).
The two wagon units of Burn Standards employ about 1,000
people 700 in Burnpur Factory and 300 in Howrah factory.
Together the units produce about 1,000 wagons a year. In 20082009, the company posted a cash profit of a little over Rs 5
crore (unaudited) on a turnover of about Rs 175 crore, of which
the share of the wagon units will be about Rs 80 crore.
Meanwhile, Mr. Pawan K. Rui, Chairman, Jessop & Company, in a
statement said, Jessop being a manufacture of EMU coaches for
several years would not only welcome the proposed an EMU
coach factory at Kanchrapara but would also be keen to share
the experience in this regard.
More than 60 par cent jump in the wagon procurement target
would also a boon to Jessop, now ready with improved designs
of wagons and aluminium wagons. According to Mr Umesh
Choudhary, Managing Director, Titagarh Wagons, the dedicated

30

railway freight corridor project would be a game changer for

the logistics industry and the economy.
The projects emphasis on light-weight specialized wagons is
important for Titagarh Wagons set to enter the manufacture of
aluminium wagons manufacturing.
Titagarh Wagons, in collaboration with Freightcar America, is
designing a prototype for aluminium wagons in the country. It is
expected to be ready by December.
In case of EMU coaches, the company has bagged its first set of
orders for six rakes from the Railways and expects order flow to
increase in view of the Ministers proposal to increase
frequency of local and short-distance EMU trains.
After the heightened expectations in the run up to the Railway
Budget, the announcements made on Friday may have come as
a dampener. With no roll back of the increase in freight charges,
the Budget did not provide much of an impetus, on the lines
expected by Corporate India. But it does spell positively on
companies associated in the business of making railway related
goods.
Companies such as BEML, Texmaco and Titagarh Wagons that
are in the business of making wagons, EMU and metro coaches
stand to benefit from the announced addition of 18,000 wagons
(as against 11,000 in FY09) to Indian Railways fleet in the
current year.
The announcement of new train services, refurbishment of
older coaches and the intended introduction of high-capacity
air-conditioned double-decker trains will also bode well for
these wagon manufactures. The setting up of a new coach
factory for manufacturing 500 coaches a year in Kanchrapara in
West Bengal may not pose significant competition to the
players as the Railways (according to industry estimates) is
expected to acquire 1,00,000 wagon units in the 11th Five year
Plan.

31

Such a high wagon procurement target may result in all the

players getting meaty orders.
That the planned investment outlay by the Railways has been
increased to Rs 40,745 crore is also a positive for other railwayrelated stocks. The budget has increased its allocation
(compared with the one made in the interim budget) for new
lines from Rs 1,100 crore to Rs 2,921 crore.
In addition, even though the budget did not spell out definitive
plans for taking the dedicated freight corridors forward, that the
Ministry continues to focus on it also reflects well for these
container operators. Players such as Concor and Gateway
distriparks, give their cold chain initiatives may also benefit
from the proposed development of cold storage facilities for
farmers to store vegetables and fruits.

PROCESS OF SELLING
The orders in hand with the BBUNL Group of Companies as on
01.04.2007 were Rs. 711,61 crores (gross value) and Rs.
515.57 crores (billable value), excluding the nonmoving order
of BSCL/Howrah Works worth Rs. 15.05 crores (gross) and Rs.
13.10 crores (billable), respectively.
During the year under report, the BBUNL Group of Companies
secured new orders aggregating to Rs. 537.52 crores (gross
value) comprising of Rs. 410.02 Crores (gross value) from the
Railways and Rs. 127.5 crores (gross value) for non-Railway
products, including.
The summary of order booking/executed by BBUNL Group in
major product categories during the financial year 2007-08 is
as follows.
The actual production (gross) during the year amounted to Rs.
499.71 crores against the available orders.
11.05 Orders for 2038 VUs wagons were bagged from the
Railways and 20 VUs wagons from Non Railway customers
during the year under report.

32

12.0 EXPORTS
12.01 New export order worth Rs. 3.43 crores was secured
by BSCL during.

worth Rs. 3.43 crores was secured by BSCL during the year.
under report.
12.02 Export/Sales turnover of the BBUNL Group of Companies
during the year achieved to the tune of Rs. 12.05 crores against
the previous year amounting to Rs. 8.48 crores.
FOREIGN EXCHANGE EARNINGS & OUTGO
During the year under report, earnings in foreign currency of
the Company, as stand-alone entity, were Rs. 3.97 crores on
account of export sales. There was no outgo of foreign currency
during the year.

RELATIONSHIP WITH DEALERS

Pay revision (due from 01.01.1997) for execu tives could not
take place in the major subsidiaries. Also, wages in some
subsidiaries could not be revised. This impending pay/wage
revision and non-uniform pay structure across the Group
companies caused unrest among the employees concerned.
Further, inability of one of the subsidiaries to pay wages and
other statutory/terminal dues in time also caused
dissatisfaction to the employees.
However, industrial relations continued to be cordial during the
year under review.
Texmaco is the leader in the wrong segment with a 25% market
share. It has sustained its leadership in the past and has an
established performance track record. The company has order
backlog of -5,500 wagons and we believe that Texmaco will
continue to maintain its leadership. Moreover, increasing
investments in hydel capacity augur well for the

33

hydromechanical division. However, the hydel power

generation industry typically suffers from significant delays in
order and execution.
Texmaco has formed a JV with United Group (Australia) for
manufacturing metro and EMU coaches. Which is expected to
commence operations in the next 10-12 months. We initiate
coverage on Texmaco with a BUY recommendation and a price
target of INR 124.
Wagon order adequate:
The company has an order backlog of 5,500 wagons,
Which should be adequately sustain FY 10 performance. IR
release tenders or wagons annually. A tender for 5,862 wagons
was recently floated in July 2009 and the balance is expected
during Q3FY10. Thus, bulk of the benefit from new orders being
awarded will be reflected in FY11, in our view and gives us
comfort over revenue visibility. However, over the past two
years, there has been considerable delay in award of orders
and quantity tendered lower-than-planned. IR targeted
procurement of 20,000 wagons annually in FY09; against this,
actual procurement was ~50%.
MRTS coaches will take time: The metro and EMU coaches will
take another
10-12 months.
These Wagons can carry 60 tonnes graded coal and can ply in
merry-go-round system. The loading is done from the top and
unloading is done automatically from the bottom through
Pneumatic Door Operating Mechanism activated by Rail Side
Devices mounted on the track. The electropneumatic system is
actuated from 24 to 32 Volt DC operated Line Side Equipment
at the desired place.The Door Operating Mechanism has been
successfully developed by BBUNL and are in wide use. The
wagons have the same features as other 8 wheeler bogie type
wagons used for carrying bulk load.

34

Wagons are per customers specifications & service

requirements can also be manufactured and supplied to
meet any International Standards.
Description
Product

Track Gauge
Total Weight
Tare Weight
Load Capacity
Volume Capacity
Overall Length
Width of Carbody
Height of
Carbody
Coupler Type

Specification
Open Coal
Hopper Wagon
(BOBR)
1676 mm
81.28 M.T.
27.45 M.T.
58.38 M.T.
57.20 cu.m
11600 mm
3500 mm
3735 mm

Open Ballast
Hopper Wagon
(BOBS)
1676 mm
91.6 M.T.
30.4 M.T.
61.2 M.T.
34 cu.m
11597 mm
3020 mm
3304 mm

A.A.R E Type
A.A.R E Type
(High Tensile) with
(High Tensile) with
high capacity Draft- high capacity Draftgear
gear
Bogie Type
Casnub 22 NLB Cast Casnub 22 NLB Cast
Steel
Steel
Brake System
Air & Hand Brake
Air & Hand Brake
Max. Speed
100 Km/h
100 Km/h
The DC and AC EMU Coaches and of semi-integral design with
corrosion resistant carbon steel construction (Cotton Steel). The
Coach Underframe is manufactured from Rolled as well as
Pressed Steel Sections. The bogies are fabricated steel
construction with Coil Springs for Primary and Secondary
suspension.
The Traction Motors for both DC and AC EMU are DC series
Motor type with Rheostatic Control for DC EMU and Transformer
Secondary Tap Changing Control for AC EMU.
The power supply for DC EMU is 1500 Volts and for AC EMU it is
25 kV, 50 Hz AC. The power collection is through Roof Mounted

35

Light Weight Pantograph. Electro-pneumatic Braking System is

provided for both AC and DC EMU Coaches.
Description
Track Gauge
Length over Bodyend Panels
Distance between Bogie Centres
Bogie Wheel Base
Max. Load per Axel:
Motor Coach
Trailer Coach
Width Over Bodyside Panels
Height of Centre of Roof from Rail Level
Max. Service Speed
Wheel Dia. On Tread
Brake System
Min. Radius of Curvature
Coupler Type

Specification
1676 mm
20739 mm
14630 mm
1896 mm
20 te
16 te
3658 mm
3810 mm
110 Kmph
952 mm
Electro Pneumatic
152.4 m
C.B.C Centre Buffer
Coupl

VISION AND MISSION

Vision
To provide the road map of business development,
diversification and capacity/capability building in respect of all
the Group companies.

To make BBUNL Group a leader in the field of wagon

manufacture, engineering and infrastructure development in
India and to gradually establish the company as a global player.
Mission
To enter into new technologies in respect of its core strength
areas.

36

To arrange technology transfer and its dissemination especially

through collaboration with reputed global players or through
suitable technology tie-ups for technology up-gradation and
diversification of business in wagons, bogies & couplers as well
as in infrastructure development.
To generate 30% of its operational cost/expense in the current
year and to reach 50% level by next three years.

Values
Zeal to excel and zest for change
Integrity and fairness in all matters
Respect for dignity and potential of individuals
Strict adherence to commitments
Ensure speed of response
Foster learning, creativity and team work
Loyalty and pride in the company

ORGANISATIONAL STRUCTURE

37

Bharat Wagon and Engineering Company Limited is divided into

following department :(i)
Personnel Department - The personnel department is
hereby in charged (Personel and Administration) assistant who
is also looking after the job of welfare officer.
(ii) Finance Department Finance department is headed by a
Manager (finance). The work of finance department is to fix the
price of the product by costing methods and other allied works
related to the employees for which they are entitled.
(iii) Stores and Purchase Department - Stores and purchase
department is headed by Material Manager. The department
conducts the supplies and purchase of all materials and
products. This department receives the order for the supply of
products.
(iv) Work Department Work department is headed by Deputy
Manager (Works). The main function is to take care about
wagon assembly, cutting and welding, Pross and smithy,
machine shop, finishing and painting shop.
(v) Planning and Civil Department Deputy Manager
(planning and inspection) headed this department. The main
function of the department is to get the civil work done and
capital budgets etc.

38

structure at Bharat Wagon and Engineering Limited Company is

shown in adjacent page :-

FUNCTIONS OF VARIOUS DEPARTMENT AT BWEL

39

PERSONNEL DEPARTMENT
Employment Administration :Cultivation of specific sources of manpower.
Selection process including test, interview, examination etc.
Placement, induction.
Maintenance of employees records.
Transfer, promotion, demotion, disciplinary action, grievances
etc.
Manpower planning.
Wages rates clearance allowance and other monetary
allowances.
Cost of living incise.
Administration of employees appraisal plan.
INDUSTRIAL RELATIONS :Settlement of grievances.
Negotiation and dealing with trade union and labour
department.
Interpretation and dissemination of companys personnel
policies.
Legal matters concerning employees.
Employment moral.
Communication
WELFARE ADMINISTRATION :Canteen and cafeteria
Workmen compensation.
Educational, recreational and cultural activities.

40

Co-operative activities.
Transport.
Personnel guidance and counseling.
MANAGEMENT DEPARTMENT :To provide training facility to improve skills of the employees.
To facilitate them on the job training and off the job training.
Arranging seminars and conferences.
Providing educational and vocational counseling.
Execute the performance appraisal of the employees potential
and capability.
MANPOWER PLAINNING :RECRUITMENT AND SELECTION
REPRESENTATION OF COMPANY IN LABOUR COURT
ISSUING CHARGE SHEET AND CONDUCTING DOMESTIC INQUIRY
FURNISHING VARIOUS STATUTORY RETURN TO HEAD-OFFICE AS
WEL AS DIFFERENT AGENCIES ETC.
LIASIONING WITH THE TRAINING OF AGENCIES :
MOTIVATING AND PRACTICAL TRAINING OF EMPLOYEE FOR
PRODUCTIV.

2.

Finance Department

The work of the finance department is to find the price of the

product by costing method and other allied workers related to
the monetary payments of all sorts of the employees for which
they are entitled.
The main functions of finance department

41

a.
Maintenance of books of accounts related to purchase
sale, stores establishment and salary v and wages payment
etc.
b.
Preparation and submission of various management
reports on productions, cost control, cash flow stock, sales etc.
c.
Statutory compliance under excise, income tax, provident
funds, E.S.I. etc.
d.
Handling matters related to statutory internal C.A.G.
commercial and tax audits.
e.

Analysis of accounting: data for decision-making purposes.

f.
Financial concurrence to different proposal including
capital investment decision.
g.

Cash management and handling banking matters.

3.

Works Production Department

1.

Fabrication and assembling of railway goods.

2.
Manufacturing of wagon components. Fabrication of
component of railway bridges/ road bridges.
Safety Officers have been appointed in this company to render
the following function :a.

To act as an expert and safety and pollution control.

b.
To provide preventive measures against occupational
diseases so as to product. The health of the workers and
promote better hygienic atmosphere through the co-operation
of the medical officers of the factory.
c.
To implement the safety provisions under the factories act,
1948.

42

d.
To ensure accident free atmosphere and to check
operations and issue work permits after the hazards having
removed and repair made.
e.

To check from time to time water and air pollution.

f.
To check noise hazards through appropriate means and to
reduce them to the appropriate means and to reduce them to
the appropriate sound levels.
g.
To prevent the loss of the property of the organization due
to accidents and mishandling o the tools and materials of the
company.
h.
To procure safety equipment and prepare for safety
budgets and also to see that those safety aids are properly
utilized by the workmen.
(ix) To promote safety education and training for th workmen
and also motivate them through safety campaign and rewards.
(x) To make safety amidst, appraisal and review to ensure
against recurrence of accidents.
(xi) To laise with the Factory Inspector as and recognized
training institute like Central Labour Institutes (CLI), Regional
Labour Institutes (RLI).
(xii) To prepare accident reports and analysis for submission to
organize works department is divided into different sections &
sub sections for better and systematic production as follows:-

Department / Sections
Personnel
Canteen
Store
Loading
Press and Smithy
Cutting and Welding
Drilling

Department Code No.

200
203
401
403
501
502
503

43

Wagon Assembly
Wagon Finishing
Foundary
Machine-shop
Sub-Assembly/Shot Blast
Progress
Template
Inspection
Mechanical and Electrical
Maintenance
Safety

504
505
506
507
508
509
510
511
512
516

4. Maintenance Department
The Function of the maintenance Dept. is as follow:
Mechanical Maintenance of all machineries and equipments.
Electrical maintenance of all machineries and equipments.
Vehicle maintenance.
Generator operations and maintenance.
Erection and commissioning of equipments.
5. Planning and Inspection Department:
The main functions of Planning and Inspection Department are:Total planning of the unit in respect of the requirements of
materials for wagon production.
Liaison with railways and other officers for better output in the
line of demand.
Inspection of all incoming material for wagon production and
other items.
Audit check of different stages of production of as per the
manufacturing standards of railway

44

C-72 for better quality assurance and do the satisfaction of

RDSO (Railway design & standard organization).
Liaison with mounting team for mounting of wheel set.

Security Department
The main functions of the Security Department are
To supervise the factory from any pilferage, damage, fire
hazards as well as security of plant & machineries.
To maintain the records of incoming and outgoing materials,
persons etc.
Medical Section
B.W.E.L., Muzaffarpur having a full fledged medical provide first
aid to the employees.
8.

Computer Science

This department is completely meant for Management

Information system (MIS) and co-ordination with all the
concerned departments and render the following functions.
(a) To keep proper records of employees, their identification
no. and relevant details.
(b)

To keep records of accounts of production.

(c) To maintain the database management of the company to

coordinate with all the departments in keeping information up
to date.
(d)

To make pay roll of the employees.

(e)

To keep records of accounts of production.

(f) To assist the finance department in preparing the balance

sheet, sundry debtors, cash
Bank, GV. (General Voucher) etc.

45

(g) To prepare Goods Receipts Note (GRN), B.H.W.R. (Bolt, Nut,

Washer & Riveties)
Bought out components, Issue, Vouchers etc. records for
stores department.
(h) To prepare data entry of variable earning & deduction
(monthly overtime, attendance,
leave etc.
(i)

To prepare monthly D.O. value position

9.

Material Department

Material Department of Bharat Wagon & Engineering Company

Limited, Muzaffarpur is very important as it is primarily
intended to assist in the production, maintenance and other
allied function of all departments in respect of
To make available balance flow of raw materials components,
equipments and other materials necessary to meet operational
requirements.
To provide maintenance of materials, spare parts and general
stores as required.
Material Department has been sub divided into major
sections.
Purchase section is mainly engaged for procurement of all
materials required for the companys business e.g. from paper
pin to C.S. Bogie from calculator to shot blasting equipment.
Store section is mainly to engaged for receiving, storing
issuance with all case of inventory
control and plays a vital role to achieve the targeted production
with all possibilities of cost reductions and make the company
in profit. As because Bharat Wagon and Engineering Company
Limited is an engineering company and where the cost of raw
materials for production is 50-60% of the total cost incurred.

46

The unit wise manpower break-up is given below:

Unit

As on 31st
March 2001

As on 1st
September
2001

Muzzafarpur Unit

771

743

Mokama Unit

741

707

Bela Works

110

101

Head office, Patna

105

113

Regional office, Kolkata

16

12

Regional office, New Delhi 06

06

Total

1682

1749

Strength and Opportunity Analysis

Strengths

Opportunities

Established brand name

Moving into value added

wagons-

ISO-9002 certified factories for

wagon manufacturing

Increase thrust in the area of

pontoon Bridges and Screw
Location well connected by rail
pile bridges
& road
Focusing on oil companies for
Ample space available for
building
future expansion at Mokamah
overhead/underground fuel
& Bela
storage tanks.
Skilled workforce with rich
Utilisation of the excess space
experience in steel erection &
in the units at Mokamah and
fabrication
Bela for expansion
Good track record
Tapping export market for
wagons

47

INDUSTRIAL MARKETING POLICIES

Powers are delegated to various agencies namely Board,
Managing Director, General Managers and other Officers
depending upon the nature of issue. Some of the important
Policies delegated are mentioned below
Board:
Policy matters relating to service conditions, wages and salary
structures including allowances, bonus, retirement benefits, not
requiring Governments approval.
Contracts (above rupees one crore). Write of bad Debts ( over
Rs. 25000/-), Sanctioning above 20% excess over senctioned
estimate in a project/item.
Ex-gratia payment above Rs. 10000/- in case of death / injury of
company employees. Appointment of officer above Dy. Manager
Manager post, scale- Rs. 5400-225-6300-250-9050/- (1995
Revision), and below Board Level.
Norms set by the BWEL for discharge of its functions:
The company has well defined procedures and guidelines for
discharge of various functions. These are highlighted below
Manuals
BWEL has procedural manuals covering important activities viz
Purchase Manual, Works Manual. These manuals ensure
carrying of activities in a systematic and standardised manner
and eliminate the scope of exercise of discretion. While
discharging the functions covered by these manuals, the
employees follow the provisions of these manuals.
Guidelines of Department of Public Enterprises
BWEL being a public Sector Enterprise follows the guidelines of
Department of Oublic Enterprises and directives of Government
of India issued from time to time.

48

Burn standard Co Ltd

Braithwaite & Co Ltd
Bharat Wagon & Engg Co Ltd
The group companies have supplied various types of wagons
with different capacities, both in eight wheeler (Bogie type) and
four wheelers to Indian Railways and many overseas Railways.
The group companies have also received ISO 9002 Certificates
for manufacturing Wagons and wagon components.
Railway Wagons

Type of wagon manufactured:

Open Type Freight Wagon (BOXN)
Covered Type Freight Wagon (BCNA)
Flat Type Freight Wagon (BRNA)

Casting Jobs

Grey Iron Casting including wagon

components, bevel gear box, screws
and other components.

Sugar Mill
machineries

Complete Rollers, Roller Reshelling,

Filter press, Crystallizers, Sulphur
furnance, Condensers, Conveyor Mill
Coupling, Molasses pumps and other
allied equipment.

Steel Fabrications

Fabrications suitable for the following:

Steel Plants
Thermal Power plants
Oil Installations
Fertilizer Units
Railway and Road Bridge Structural

Screw Pile Bridge

Designing and manufacture of

49

components for screw pile bridges with

all relevant components to suit river
width.
Coal Minning
Equipment

Coal Tubs, Mine Cars, Ropeway Buckets

LPG Cylinders

Manufacturing LPG Cylinder for domestic

use

Projects

Defence Road Trailers, Transmission

Towers and Sub-Station Structural

Product Range With Description

Product
Category

Description

Railway Freight BOXN 8 Wheeler Broad Gauge Bogie Open

Wagons
Type Wagons fitted with Cast Steel Casnub
Bogies, High Tensile Centre Buffer Couplers
(NT) with single air brake system, Tare Wt.
22.47 MT,Pay Load 58.81 MT and Gross Load
81.28 MT.
BRNA 8 Wheeler Broad Gauge Flat Wagons
with fixed ends but fitted with single air brake,
Casnub bogies and HT CBC coupler
BCNA 8 Wheeler Broad Gauge Bogie covered
wagons fitted with cast Steel Casnub Bogie

50

with Air Brake and CNC(NT) couplers

Structural

MS Trough plates 8 mm thick MS double

troughs used in screw pile road bridges of
width 0.76 m, length 4.27 m and 10 mm thick
double steel trough used in railway tracks on
bridges.
Fender plates 8 mm thick fender plates used
in screw pile briges.
Underground Mild Steel Tanks 15KL, 20 KL,
45 KL and 70 KL tanks
Grinders Grinders for screw pile bridges
Wagon Components Forged, Pressed and
Fabricated components for various types of
wagons.

CI Castings

Wagon Components, Bevel Gear Box, Standard

plates & Various components

Sugar Mill
Items

Rollers New rollers and Reshelling of rollers

Tail Bar Couplings
Scraper Plates and Sulphur Burner
Machine Parts for Jute Mills

Other
Miscellaneous
Items

Heavy Media Sump

Hopper used in coal washery units.
Coal tubs and Mines car
High Pressure Heat Exchanger Pipe for oil
refinery
Coal handling plant equipment for power plant
I.D. Fan impeller
I.D. and F.D. fan shafts

51

Crush shafts
Steel Brake Drum

List of Major Plant & machineries for production of

wagons at Mokama
S.No.
Description
Nos.

Capacity

1.

Brake Press M/C

1

315 T

2.

Brake Press M/C

1`

135 T

3.

Hyd. Press m/c

400 MT

4.

Hyd. Press m/c

250 MT

5.

Profile gas Cutting m/c pug

1/8 to 6 thk

Straightline gas
6.

Cutting m/c
7

50 MM thk

7.

Profile Kangaroo gas cutting

1

38 mm thk

8.

Pillar Drilling M/C

40 MM & 50 MM dia

9.

Radial Drilling M/C

50 MM to 65 MM dia

2
5

10. Girder Drilling m/c

52 mm to 56 mm dia

11. Shearing m/c

10 mm to 16 mm thk

12. 3-Roll plate bending m/c

16 x 2500 mm

13. Power hammer (pneumatic)

2

5 cwt

52

14. Rivetting hammer

1

5 cwt

15. Cropping Machine

2

up to isa150 x 150 x 12

16. Co2 mig welding m/c

450 amp

17. Welding transformer

450 amp

60

18. Welding transformer

350 amp

10

19. Submerged auto welding set

20. Shaper

Stroke-24

21. Universal Milling M/c

2
22. Central Lathe

750 amp

400 x 1650 mm
1.5 to 2 m centre dist & SP

bore 53 to 80 mm
23. Central Lathe

SW-370 to 390 mm

24. Engine Lathe

SW-870 mm

25. Turret Lathe

1
26. Capstan Lathe

2
1

SW-550 mm
SW-450 mm

27. Horizontal Beam bending m/c 315 mt

28. Power Hacksaw

29. Circular Sawing m/c

18
Round 9 dia, SQ-8

30. EOT Crane

5T

31. EOT Crane

10 T

32. EOT Crane

15 T

33. Mobile Crane

10 T

34. Vacuum Tester

41 CFT / MM

53

35. Wagon Weighment machine

40 T

36. Platform Weighing Machine

30 T

37. Oil Fired Heating Furnace -

38. Power Winch

5, 10 T

39. Shot Blasting Plant

3-4 wagons

Machineries for Utility service

1.

D.G. Set

250 KVA

2.

D.G. Set

500 KVA

3.

Air Compressor

400 CFM at 100 PSI

4.

Air Compressor

535 CFM at 100 PSI

5.

Air Compressor

547 CFM at 8 ATM(G)

6.

Mobile Air Compressor

7.

Fork Lifter

400 CFM

3 Ton

List of major plant and machineries in respect of

structural fabrication
Description

Capacity

Nos.

Three roll bending m/c

16 x 2500 mm

Shearing m/c

10 mm to 16 mm

CROPPING M/C

IP TO ISA 150 X 150 X

12
PUG STRAIGHT LINE 50 MM THIK

CURRING M/C
PROFILE GAS

1/8 TO 6 THK

54

CUTTING M/C
PILLAR DRILLING

40 MM & 50 MM dia

M/C
Radial drilling m/c

50 mm to 63 mm dia

Brake press m/c

315 T

Ecentric press m/c

135 T

Shaper m/c

stroke-24

Co2 mig welding m/c

450 amp

5
1
1

Welding transformer450 amp

60

Power hacksaw

18

Centre lathe

sw 370-390 mm

2
Mobile crane

10 t

Air Compressor

400 cfm at 100 psi

D.g. set

250 kva, 500 kva

Fork lifter

3t

Mobile air compressor

S. No.

2
400 cfm

Circular sawing Machine 9 dia & 8 SQ

Power winch

Description
Nos.

5, 10 t

Capacity

55

1.

Power source

a.
Step down transformer
2(11kv-440 v)

2.

500 KVA

Capacity power source

(a)

Diesel Generator

250 Kva

Diesel Generator

500 Kva

Diesel Generator

20 Kva

1
(b)
2
(c)
1

3.

Air compressor
Compressor (elect)

240 CFM

Compressor (elect)

565 CFM

Portable Compressor (diesel)

400 CFM

3
1
2

4.

Cranes & Hoist

(a)

EOT Crane

15 T

EOT Crane

12 T

EOT Crane

10 T

2
(b)
1
(c)
2
(d)

Hot Crane

10 T

56

(e)

Hot Crane

5T

(f)

Jib Crane

2T

(g)

Jib Crane

1T

5.

Mobile Cranes & Materials Handling Equipment

(a)

MOBILE CRANE

7.5 T

(b)

MOBILE CRANE

8T

(c)

MOBILE CRANE

10 T

(d)

FORK LIFTER
1

(e)

LOCO PULSER (WAGON

2.5 T
-

2
SHUNTER)
(f)

DIESEL LORRY TRUCK

10 T

6.

Shearing/Cropping/Punching/Shaw machines

A
mm

Shearing Machine
1

10 mm x 2500

B
mm

Shearing Machine
1

16 mm x 2500

Shearing Machine
1

7mm x 3200 mm

D
Cropping Machine
150x150X10 1

angle upto

E
Cropping Machine
150x150X10 1

angle upto

57

F
Punching Machine
thickness 1

upto 7/16

Circular saw machine

upto 150 mm

Power Hackshaw

upto 150 mm

Profile Cutting machines

1.5 m x 150 mm

1
H
1
a)
thk 3
b)

Profile cutting machines

1.5mx3.0mx150mm thk 1

c)

Pug Straogjt edge cutting m/c

3

50 mm thk

7.

Power Press & Hammers

a)

Hydraulic Press

b)

Pillar type hydraulic press

2

600 T/400 T

c)

Ecentric Electro mech. Press

80 T

250 mt

1
d)
kg

Pneumatic Hammer

400, 250, 200 & 100

e)

Pneumatic Chipping Hammer

5

8.

Power Press & Hammers

a)

Hydraulic press
2

10 mm x 180 mm

250 MT

58

b)

Pillar Type Hydraulic Press

2

600 T/400 T

c)

Eccentric Electro mech. Press

80 T

1
d)
kg

Pneumatic Hammer

400, 250, 200 & 100

e)

Pneumatic Chipping Hammer

5

10 mm x 180 mm

9.

Welding Equipment

a)

Arc welding transformer

400/450

b)

Mig/Mag Welding Machine

9

400 A

c)

Submerged Arc Welding Machine

1

600 A

10.

penumatic rivetting hammer

14

upto 20/22 mm

11.

machine/drills

A
m bl 2

Heavy Duty Lathe

cht 500 mm x 5.5

B
m bl 1

Heavy Duty Lathe

cht 350 mm x 4.6

Centre Lathe

38

cht 125 mm x 2.0 m bl

59

Centre Lathe

cht 200 mm x 1.5 m bl

1
E
2

Capstan Lathe

Shaper Double Arm

collet dia 40 mm x350 m

Stroke 26

1
G

Shaper Single Arm

1

Stroke 20

H
1.2 M

Planer Heavy Duty

1

bed 3 x 1.5 m, HT

I
0.45 M

Planer Light Duty

1

bed 1/45 x 0.5 m, HT

J
dia 1 m

Slotter Heavy Duty

1

Stroke 500 mm bed

Plain Milling Machine

Universal Milling Machine

Boring Machine (Horizontal)

bed 1.25m, ht 0.4 m1

d 1.0 m x 12 m

1
N
Boring m/c (Vertical) double Head900mm od*500 mm
id*2M10Lg
2
O
Boring

Shell Boring m/c double head

2

Sugar Mill roller

Gang Drilling m/c double head

1

1.25 , BL 13 M

Universal Drilling m/c

size 1.5

Radial Drilling Machine

3

size 1/25/1.5/2

1
R

60

Surface Grinding m/c

8 x 5.5 x 2

Pedestal Grinding m/c

16 x 5 x 1.5

Pedestal Grinding m/c

1

18 x 2.5 x 2.5

Portable Drilling m/c

1
T
1

12.

20 M

foundry equipment

a)

Cupola

5t. 2t

3
b)

Oil Fire Melting Furnace

0.5 t

Hot Metal Ladles

8t, 4t, 2t

d)

Coal fired Core Drying Oven

2

250-300 degree c

e)

Sand Muller Machine

5 cft/hrs

Jolt Squeeze Moulding Machine

340 kg

g)

Wood Planner Machine

1

18 Cutter Length

h)

Band Saw Machine

1
c)
1

1
f)
1

5 hp

1
13.

Air Brake Testing Rig

2

14.

Vacuum Brake testing machine

15.

wagon weighment machine

2

6 kg/CM.SQ
40 T

61

16.

Shot Blasting Plant

17.

Power winches

3-4 wagon/day
15 hp

2
18. Three Roller Type Plate Bending m/c
2500 mm wide 1

16 mm tjocl x

Technical Parameters of Meter Gauge Coach for Indian

and Vietnam Railways
Description

Indian Railways Vietnam

Railways

Track Gauge

1000 mm

1000 mm

Length over Bodyend

Pannel

19500 mm

19000 mm

Length over Centre

Buffer Couplers

20184 mm

20184 mm

Distance between Bogie

Centres

13715 mm

13300 mm

Bogie Wheel Base

1980 mm

1980 mm

Max. Load per Axle

10 Te

10 Te

Width over Bodyside

Pannel

2740 mm

2740 mm

Height of Roof from Rail

Level under Tare
Condition

3355 mm

3700 mm

Height of Centre Buffer

Coupler from Rail under
Tare Condition

825 mm

825 mm

Max. Service Speed

90 Kmph

100 Kmph

Wheel Dia. On Tread

952 mm

780 mm

62

Brake system

Vacuum/Air
Brake

Air Brake

Max. Radius of Curvature 90 m

90 m

Coupler Type

High Tensile C.B.C

type AAR 10 A
Contour

High Tensile
C.B.C type of IR
Standard

EXECUTIVE SUMMARY
The relationship between land and labour is nearly as old as
human existence on the earth. As we cannot imagine the
process of creation of wealth without labour, it is treated as
more important. The satisfaction of worker is linked with the
question of our existence & profitability. Increase in production
is not possible without the fullest co-operation between
management and labour and the most important determinant
is a managers ability to minimize the conflicts and maximize
the satisfaction of employers & employees. This situation may
be created by taking intense are upon labour productivity,
which is based on incentives, motivation compensation have
been evolved over a period of time. More particularly with a
view to motivate the worker & employee concerned.
The success of any organisation also depends upon the facts
that effectively and efficiently the wage and salary
administration is handled by the manager, that can turn the
worker towards satisfaction level. If an ideal match between
technical innovations and workers aspiration have been set-up,
they may be capable of producing new idea developing and
improving capital goods and modifying the available physical
and financial resource in order to achieve greater productivity,
satisfaction depends on the strategies adopted for wage and
salary administration.
By observing the above points, it can easily be concluded that
the importance of wage and salary administration at present

63

day cannot be ignored. While working on this topic, my present

aim is to evaluate the wage and salary administration in
company like BWEL, Muzaffarpur unit, Muzaffarpur. I have also
evaluated the various methods of wages and salary
administration.

Thus progress is a continuous process. It is relative and

absolute. We cannot stop at a certain destination and declare
that target has been achieved and we need to go further. One
has rightly said the following lines :The woods are lovely dark and deep, but I have promises to
keep a mile to go before I sleeps.
Summer Training Programmes are designed to give the future
feel of the corporate happening and work culture. These real
life situations are entirely different from the simulated exercise
enacted in an artificial environment inside reason that the
summer training programmes are designed so that the
managers of tomorrow may not feel ill in case when the times
come to shoulder responsibility.
That experience that I have gathered over the last six weeks
have certainly provided me with orientation which I believe will
help me to shoulder any assignment, successfully in near
future. I have tried my level best to arrange the work in a
systematic and chronological manner.

We read theoretically the matters noted in the books but are

not very much acquainted with the actual working in the
organisation. There becomes a lot of difference between the
bookish knowledge & the practical Knowledge. To have a
practical feelings & go through the working an organisation is
very much beneficial for us. The experience gain during these
six weeks is of highly importance.

64

Even though this project report will be helpful for the

management of BWEL, to look back at their role and procedures
regarding wages and salary activity stake necessary steps to
improve it.
The future students of management disciplines who want to
know abut the working of BWEL, Muzaffarpur, especially with
regard to wage & salary will get a massive help from this
project report.

65

PRESS & SMITHY SHOP

In this press and smithy shop there are seven open nearth
furnances where coal burns on the bed. On these famous
various of parts are heated. The heated part is kept on the anvil
with the help of hammer the required shape is formed. In this
shop more than 50 components are :Head Stock pressing
Anchor plate pressing
Anchor support pressing
Foot Step
Pull Road
Head Stock
Hand Wheel
Bolster
List & Numbering of machine :1.

Hydraulic Press

(400 T)

-----

2.

Hydraulic Press

(250 T)

-----

3.

Press Machine

4.

Power Hammer

(400 Kg) -----

5.

Power Hammer

(250 Kg) -----

6.

Power Hammer

(100 Kg) -----

7.

Power Hammer

(80 Kg)

8.

Coal Fired Forge

-----

9.

Oil Fired Furnance

-----

10. Blower

(600 T)

-----

-----

-----

66

(1) Press & Press Work :The press is metal forming machine tool designed to shape of
cut metal tool by applying mechanical force or pressure. The
metal is formed the desired shape without removal of clops.
The presses are exclusively intended for mass production work
and they present the fastest and most efficient way to form a
sheet metal in a finishing products.
(2) Power Press
The constructional feather of a power press is almost similar to
the hand press the only difference being, the ram instead of
driven by hand is drives by power. The power press may be
designated as mechanical or hydraulic according to the type of
working mechanism used to transmit power to the ram. In a
mechanical press, the rotary motion obtain from an electric
motor is converted into reverted into reciprocating movement
of the ram by using different mechanical device. In a hydraulic
press, the fluid under high pressure is pumped on one side of
the piston and then on the other in a hydraulic cylinder to
derive the reciprocating movement. A power press has driven
by crank and connecting road mechanism. The working of the
press is similar to that of a hand press. The punch is fitted on
the end of the die is attached on the bolster plate. The fly
wheel mounted at the crank shaft stores up sheet metal is
pressed between the punch and the die.
Power Press Parts :The different parts of a power press are described below :Base
Frame
Bolster Plate
Ram or slide
Pitman

67

Crank shaft or eccentric

Fly Wheel
Clutch
Brake
1. Base :-The base is the supporting member of the press
and provides arrangement for tilting and clamping the frame in
an inclined press.
2. Frame :-All presses except the straight side type have C
shaped frame to take up the vertical thrust of the ram.
3. Bolster Plate :-The Bolster plate is a flat plate fetted on
the base for supporting the die block and other accessories of
the press.
4. Ram :-The ram is the reciprocating member of the press
that slides with in the press and guides and supports the punch
at its bottom end.
5. Pitman :-The pitman is the connecting rod in a crank or
eccentric driven press. The position of the stroke of the ram can
be changed by altering the length of the connecting rod.
6. Crank shaft of eccentric :-The rotary movement of the
motor is motor is converted into the reciprocating movement of
the ram by crank and connecting rod, eccentric and connecting
rod, or many other mechanisms.
7. Fly Wheel :-The fly wheel is mounted at the end of the
driving shaft and is connected to it through clutch. The energy
is stored up in the flywheel during idle periods and it is expand
to maintain the constant sped of the ram when the punch is
pressed into the work. The fly wheel is directly coupled with the
electric motor.
8. Clutch :-The clutch is used for connecting and
disconnecting the driving shaft with the fly wheel when it is
necessary to start or stop the movement of the ram.

68

9.

Brake :-

The brakes are used to stop the movement of the driving shaft
immediately after it is disconnected from the fly wheel.
Hydraulic Press :-The hydraulic press is used to manufacture
anchor plate. For this plate in the oil furnance. The heated
plates is kept horizontally on the machine table and ram is
allowed to press the plate due to downward movement the Ushaped anchor plate is manufactured.
The specification of this machine is as :Nominal Pressure

-----

250 Tons

Working Pressure

-----

200 atms.

Speed

-----

0.20 m/Sec.

Pressure exerted by Slide

-----

80 Tons

Stroke of slide

-----

500 mm

Maximum distance in table & slide -----

630 mm

PNEUMATIC HAMMER :-On this machine the part which is to

be manufactured is kept on the after heating on the furnance
and the ram is allowed to strike the component on the die. Due
to the strike of ram the component takes the shape that of the
die. The machines have following specifications :Falling weight of ram

-----

400 Kg.

Maximum stroke of ram

-----

700 mm.

No. of blows per minute

-----

130 blows/mln.

Working Space

-----

530 mm.

Distance from centre of ram to housing -----

520 mm.

69

CUTTING AND WELDING SHOP

Introduction :This shop works under the Supervision of Mr. Hari Kishore
Prasad this is one of the shops in which the basic work is
performed. As the name indicates this shop is mainly involved
in cutting the plates of different thickness in the desired shape
& size and in the profile cutting.
In the metal-working work pieces of most difference shapes and
dimensions and of different materials are worked. The various
working processes fall into the two groups, the of non-cutting
shaping, e.g. forging pressing, drawing, etc. and that of cutting
shaping by which finish surface of desired shape and
dimensions is obtained by separating a layer from the parent
work piece in the form of chips e.g. turning, drilling milling etc.
List of no. of machine :1.

Shearing Machine

----

2.

Cropping Shearing Machine

----

3.

Chipping Machine

----

4.

Profile Cutting Machine

----

5.

Kangaroo Machine

----

Shearing Machine :-On the shearing machine the to be cut

should be flat & the thickness should not be more than 8 min.
For cutting the flat plate is kept on the bed of the held of crane.
The machine consists of a cutting blade & no. of pressing bolts

70

press the plate and keep it rigidly fixed the downward

movement of the cutting plate.
Cropping Machine :-On the cropping machine number of
works are performed. This machine can cut the flat plate of
small sizes, angles, plates, square hollow rod & circular hollow
rod. Also this machine can be used as punching machine.
Chipping Machine :-This machine is use to produce an
inclined shaped at end of plate which is necessary in the end to
end welding. This machine has a gun through which high
pressure air comes. This machine holds a chisel. The highpressure air pushes the chisel. Which causes to cut the plate?
Profile Cutting Machine :-This machine consists of a vertical
column and two horizontal arms. The one arm consists of the
template and another arm consists of the welding torch and the
small driving motor. This machine can cut the plate of thickness
of 35 to 40 mm. Through the welding torch acetylene and
oxygen gas is supplied. This machine requires extra amount of
oxygen gas. So two oxygen pipes are connected to the torch. To
cut the plate in the desired shape. The same shape template is
fitted to the upper arm and the magnetic roller of the second
i.e. lower arm is toughed to the template. The driving motor
drives the torch. The torch moves through the profile of the
template and plate cut in the desired shape.
Kangaroo Machine :-One another plate cutting machine in
this shop is Kangaroo Machine. This is the biggest cutting
machine. This machine consists of two welding torch. The torch
can move in all the three coordinate axis i.e. X,Y and Z axis.
This is fully electronic controlled machine. This machine
consists of an electronic sensor and a horizontal plate. The
drawing of the required shape is kept on the horizontal plate
and the sensor moves through the black lines of the drawing
this machine can be moved manually. The amount of acetylene
and oxygen gas can be controlled with the knobs.

71

In the welding section mainly bolster and cross bars are

manufactured.

The Process of metal cutting in which chip is formed is affected

by a relative motion between the work piece and the hard edge
of a cutting tool held against the work piece. Such relative
motion is produced by a combination or rotary and translating
movements either of the work piece or of the cutting toll or of
both. Depending of the nature of his relating motion, metal
cutting processors are called by names example :- Turning,
Planning, Boring etc.
A cutting tool may be used for cutting apart, as with a knife, or
for removing chips. Parts are produced by removing metal
mostly in the form of small chips.
Chips :-The form and dimension of a chip metal machining
indicates the nature and quality of a particular machining
process but the types of chip formed in influenced by the
properties of the material cut and various cutting conditions.
In engineering manufacturer particularly in metal machining
process hard brittle metals have a very limited use, and dutile
metals are mostly used.
Chips of ductile metals are removed by varying proportions of
shear flow. This results in general type of shapes.
1.

The discontinuous or segmental form.

2.

The continuous or ribbon type.

Discontinuous or Segmental Chip :It consists of elements fractured into fairly small pieces ahead
of cutting tool. This type of chip is obtained in machining most
brittle materials such as cast iron bronze. These materials
rupture during plastic deformation and form chip as separate
small pipes. As these chips are produced, the cutting edge
smoothes over the irregularities and a fairly good finish is

72

obtained. Tool life is also reasonably good, and the power

consumptions low. Discontinuous chip can also be formed on
some ductile metals only under certain conditions particularly
at very low speeds and if the coefficient of friction is low with
ductile metals, however the surface finish is bad and the tool
life is short.
Conditions :- Ending to promote its formation brittle metals,
greater depth of cut, low cutting speed and small rake angle.
Continuous chip :- It consists of elements bonded firmly
together without being fractured. Under the best conditions
ribbon of metal which, under the microscope shows no sings of
tear or discontinuous. The upper side of a continuous chip has a
small notch while the lower side, which slides over the tool
face, is smooth and shiny. The continuous form is considered
most desirable for low friction at the tool- chip interface lower
power consumption long tool life and good surface finish.

73

DRILLING SHOP.
INTRODCUTION :The drilling machine is one of the most important machine tools
in a workshop . As regards its importance it is second only to
the lathe. Although it was primarily designed to originate a
hole, it can perform a number of similar operations. In drilling
machines holes may be drilled quickly and at a low cost. The
hole is generated by the rotating edge of a cutting tool known
as the drill which exerts a large force on the work clamped on
the table. As the machine tool exerts vertical pressure to
originate a hole it is loosely called a drill press.
Holes were drilled by the Egyptians in 1200 B.C. about 3000
years ago by how drills. The bow drill is the mother of the
present day metal cutting drilling machine.
In the drilling shop there are different types of drilling machines
such as radial drilling machine.
RADIAL DRILLIGN MACHINE :-The radial drilling machine is
indented for drilling medium to large and heavy work pieces.
The machine consists of a heavy, round, vertical coulomb
mounted on a large base. The column supports a radial arm
which can be raised and lowered to accommodate work piece
of different bights. The arm may be swung around to any
position over the work bed. The drill head containing
mechanism for rotating and feeding the drill is mounted on a
radial arm and can be moved horizontally on the guide ways
and clamped at any desired position. These three movements
in a radial drilling machine when combined together permit the
drill to be located at any desired point on large work piece for
drilling the hole. When several holes are drilled on a drilled on
provide guide ways on which the drill head may be made to
slide. The arm may be swage bound the column. In some
machine this movement is controlled by separates motor.

74

Drill head :- The drill head mounted on the radial arm and
drives the drill spindle . It encloses an the mechanism for
driving the drill at multiple speeds and at different feed. At the
mechanisms and control are may be made to slide on the guide
ways of the arm for adjusting the position of drill spindle with
respect to the work. After the spindle has been properly
adjusted in position the drill head is clamped on the radial arm.
Universal Drilling Machine :- It is one of the important
drilling machine. This drilling machine can produce a hole any
direction at any angle. The universal drilling machine consists
of a vertical i.e. horizontally, vertically and at any inclination.
The drilling can be done by automatic feed mechanism and by
manual operation.
Semi Universal radial drilling machine :- It is same as
universal radial drilling machine except this drilling machine
cannot produce a hole in inclined direction. This machine
consists of two electrical motors. One is used for the operation
of drilling and the another is used for the vertical movement of
horizontal arm is the feed. In these machine water is used as a
coolant the chip which comes out from the operation is
continues chip.
Sensitive drilling machine :- On the machine small sized
hole is drilled usually a drill of 5 mm and 6 mm is used for the
machine has a very long bed and a gang of three drilling
machine. This machine is used to produce a hole in the very
long channel. For operation the channel is kept on the bed the
jig is fitted to the channel and with the help jig bush the hole is
produced at desired position.
Drilling of Job :- In the shop drilling is done by two methods,
i.e. by marking and by jig. The following are the drill size &
which are used for drilling in this shop are 5 mm, 6 mm, 11
mm, 13.5mm 17.5mm 21.5 mm and 23.5 mm. These are the
drill size which is used here for drilling marking takes a lot of
time and it requires more skilled person for marking . so drilling
of component by marking is used fro a few, components where

75

it is different to set a jig. For mass production of components jig

is used for drilling. The thickness of the jig plate, which is in
practice, is 12 mm. To manufacture jig a hole greater die is
done in the jig plate and bush of required drill size is filled in
the hole, The material of the jig bush is called IV and IS: 1875.
In this drilling shop there is one universal radial machine, two
semi universal radial drilling machine and a few ordinary
machines. There is one gang drilling machine and one sensitive
drilling machine.

WELDING AND DRILLING WORK

D

76

77

MACHINE SHOP
INTRODUCTION :The shop works under the supervision of Mr. S.N. Singh . This is
the biggest shop of this organization . In this shop there are
various type of machines. :Such as :1.

Lathe

11

2.

Drilling M/c

3.

Shaper

4.

Slotter milling m/c grinder

5.

Planed

6.

Etc.

2
-

The Lathe :-In the year 1797Henry Maudslay and Englishman,

designed the first screw cutting lathe which is forerun C of the
present day.
Function of Lathe :- The main function of lathe is to remove
metal from a piece off work to give if the required shape and
size. This is accomplished by holding the work securely and
rigidity an the machine and then remove metal from the work
in the form of chips. To cut the material properly the tool should
be harder than the material of the work piece. Should be rigidly
help on the machine and should be fed or progressed in a
definite way relative to the work.

78

Lathe Parts :
1. Bed
2. Head Stock
3. Tail Stock
4. Carriage
5. Feed Mechanism
6. Screw Cutting Mechanism
Description and Foundation of Lathe Parts :1. The Bed :-The Lathe bed forms the machine . The head
stock and tail stock are located at either end of the bed and the
carriage rest over the lathe bed and slides on it. The lathe bed
being the main guiding member of the tool for accurate
machining work.
2.

The head Stock :-The head stock is secured permanently

on the inner ways at the left hand end

of the lathe bed it provides mechanical of rotating the work at
multiple speeds.

79

3.

Tail Stock or Loose Headstock :-The tail stock is

located on the inner ways at he right hand end of the bed. This
has two main uses.
(a)

It supports the other end of the work when it is being

machined between centrs.

(b)

It hole a tool par per forming operations such as drilling

remaining tapping etc.

4. Carriage :The carriage of a lathe has several parts that serve to

support, move and control the cutting. It consists of toll
parts :-

5.

(a)

Saddle

(b)

Cross-slide

(c)

Compound slide or compound rest

(d)

Tool past and

(e)

Apron.

Feed Mechanism :The movement of the tool relates to

work is lumed as feed . A lathe tool may have three types of

the lathe axis; the movement is termed as longitudinal fed and
is effected by the movement of carriage.

80

6. HEAVY DUTY LATHE

The heavy duty lathe 4 jaws chuck and can hold a job of India ..
can rotate up to a mix . Speed of 315 rpm.
The motor, which is required to rotate the chuck, has the
following specification. This is 3 phase induction motor and
required 415 volts . It s dello connection the horsepower of the
motor is 50 H.P. and the out put shaft of this motor can rotate
speed of 1460 rpm. The tail stock of the lathe consists of
separate electric motor to move to move it self on the lathe
bed.
HORIZENTAL BORING MACHINE
This machine is used for the boring purpose of big components.
This machine is driven by electric motor & with the help of gear
mechanism and main shaft is rotated. The sail, which is to be
mechanized, is kept on the bed.

Before it, a ring is inserted

over the sail to rigidly damp it. The main shaft consists of to
heads, which has groove in which cutting tool is fitted &
frightened with the bolts. The cutting head starts cutting from
opposite sides both the cutting tools rotate in opposite
direction.

81

SHAPPER MACHINE
This machine which is used here is known as Double sharper
machine . As the name itself the machine has two ram & one
long table. Both ram on the table and as per the requirement
on or both machine is used to produce good surface on rough
work place. Also it can be used to cut a key way & for many
other operations too.

FOUNDARY SHOP
Mr. S.K. Srivastava supervises the work of this shop. This is also
very important shop of this plant. In this shop casting is done.
The various parts on the wagon
are manufactured in this shop.This casting is divided into three
groups Low & Medium casting are again divided in to sub group
Green and dry and loam casting of sweep moulding. For
moulding clay is mixed with send to improve binding strength.
Normally Bentonite & cow dung improved the porous nature of

82

sand. Normally 3% clay is mixes with sand. For casting first

mould is prepared with help of moulding box.
As per the requirement core is used in moulding . Fro preparing
core reinforcement is used which supports. The pressure of the
molten metal.
Green casting is used for mass production. For dry casting, the
core and the prepared mould is hearted from inside the coal
oven to reduce the moisture & to improve the strength &
reduce the shrinkage allowance.
CUPOLA FURNACE :-This is very important type furnace. It
has the bottom bed & air chamber. During operation the
bottom bed is closed & the inclined sand bed is prepared on the
bottom bed. The air chamber which is connected with the outlet
of bower which supplies air to the coke is 12 to 36 inches above
the air chambers. Improve the firing . The coke is fired air
blown. As the coke produce heat nearly equal to 2200 0 C the
ferrous metal starts melting.
After melting the metal flows downward and get stored on the
sand bed. Due to its high density the coke starts flowing. As the
slag starts flowing outside it is confirmed that the metal is in

83

the fully molten state condition the gate is opened and the
molten metal is allowed , to blow in the ladle. In this system the
hot air

which tends to pass from top is recycled and again

supplied to the air chamber. This reduces the cost of

production.
ZONES CUPOLA:-The Cupola furnace is divided in various
Zones. A number of chemical reactions take place in this Zone,
which are as follow as :1.

Well :-It is the space between the bottom of tuyers and

the sand bed. The metals are trickles down after melting and
collects in this space before it is tapped out.
2.

Combustion Zone :-It is also known oxidizing zone. It is

located between top of the tuyers and theoretical level above

it. The actual combustion takes place in this zone. More heat is
evolved due to silicon & manganese. A

Temperature about

15400 C to 18700 C is produced. The exothermic reaction taking

place in this zone.
C+O2 . CO2 Heat
Si+O2 . SiO2 Heat
2 Mn + O2 2MnO2 + Heat

84

3. Reducing zone:-It is also known as productive zone. It is

located between the top of the combustion zone and the top
lave of the coke bed. Co is reduced in co in this zone through an
endothermic reaction, as

a result of which the temperature

falls from combustion zone. Temperature is about 1200 0 C of

this zone.
CO2 C (of coke) . 2CO + HEAT
4. Melting zone :-The first layer of metal charge above the
coke bed. This solid metal changes to state in this zone.
3 Fe + 2 CO ---------------------------------- Fe3C + Co2
5. Preheating Zone :-It extends from above the melting zone
to the bottom level of the charging door and contains a number
of alternate layers of coke and metal charges. The function of
this zone is to about 1093 C before the downward to enter the
melting zone. This preheating takes place due to the upward
advancing hot gasses.
6. Stack Zone :-The empty portion of cupola the preheating
zone. Which provides the passage to hot gasses to go to
atmosphere ,is known as stack zone.

85

Cupola Efficiency :- The thermal efficiency of cupola is given

by the ratio of heat actually utilized in melting zone and
superheating the metal to the involved in through various
means. The ratio can mathematically :Percent Cupola

:-

Heat utilize in melting and super

heating x 100
Calerific value of coke heat involved due
to
oxidation of iron , si and Mn

86

WAGON ASSEMBLY SHOP

In this shop the various components which are manufactured in
the different shops are assembled and the completed and then
set to the finishing shop. First of the assembly of wagon, the
centre sill is kept on the fixture.
Centre Sill -This is manufactured in the sub assembly shop. To
manufacture two Z channels are welder after welding the
supporting plate is welded to require position and then it is sent
for marking . After marking drilling is done by the air gun.
Lastly it is checked whether it is true size or not. If not the
length is reduced by gas cutting.
The length of the centre sill should be 9784 mm and width
should 2960 mm. The centre sill is placed in the fixture and
cross bar bolster welder to it. After welding these two seal are
attached and is welder.
Now this knows Under frame, now riveting is done . The head
stock also welded to the centre still at the ends. The gusset
plate and the cross bottom plate is welded to bolster and cross
bar respectively . The stranger welded to the under frame
through out the length. The under frame is placed on the

87

manipulator for welding at the bottom side. Now the air brake
cylinder and the pipe line is fitted and clamped . The side body
and end body is attached and riverted and welded to the
frame . This complete box is kept on the wheel .

FINISHING SHOP
After assembling the wagon is sent to the finishing shop. In this
the wagon is brought to the shot blaster chamber. In this
chamber small iron particle is allowed to strike on the wagon to
remove the extra welding deposit and the rust formed on it.
The high pressure air helps the iron particle to come out from
the gun and to strike rapidly. In this chamber the working
condition are very hazardous. So the worker wears oxygen
mask before doing work inside the chamber. After this the
wagon is painted and the specification are written on the
wagon is painted and the specifications are written on the
wagon and then dispatched to Indian railway.

10. SUPPLIER OF MAIN WAGON COMPONENTS

Components
1. Wheel

Suppliers
W.A.P. Banglore

88

2. Bogie

BESCO Kolkata

3. High Tension Couler

H.D.C. Kolkata

4. Air Brake Equipment

1. Escort Ltd. Faridabad

2. Stone India Ltd. Delhi

3. Bharat Braks & Value Ltd. Kolkata

5. Steel

1. Bokaro Steel Plant

6. Bearign

2. Tisco Indi Thmken India

Jamshedpur

TEMPLATE SHOP
Before describing the template t is worth while to elaborate the
word template. This is a pattern or gauge a time in mass
scale. This saves a lot of time, as no marking is necessary when
using template . Basically templates are of two types :
1. Marking Template
2. Checking Template
The main objective of this shop is making templates of all the
consigned wagon components where a certain profile cutting is
necessary.

89

The manufacturing of template is done with the help of the

design and drawing provided by R.D.S.O. Lucknow . Also the
allowances for different tools are taken into consideration
during marketing the template. The varies machine to machine.
The templates here are usually made of mild steel . They are of
small thicknesses.Working in this shop needs greatest accuracy
because shapes all the components made with the help of
template depends upon the template. Thus a minor fault cans a
great fault in the production.

SCRAP :MEANING AND DEFINATION

Scrap has various definitions and meaning in different contexts. Broadly scrap
is materials. Discarded from manufacturing operations that may be suitable for
re processing. Scrap is a term used to describe the recycling of metal. Old
unwanted metal such as left out iron sheets, building supplies, surplus materials,
useless equipment, safety appliances, wornout tools machine part etc.
Sometimes some raw material which is basically to be used for some special
purpose but on due inspection it is observed that material does not meet
required specifications, or is of of poor quality and is not suitable for the
purpose, such material is also considered as scrap. Scrap is material that has
been found to be unfit for further processing. Here in BWEL muzaffarpur

90

various type of scrap is produced . Broadly various types of scrap produced in

BWEL muzaffarpur can be classified as follows:
1. scrap from wagons shop :
Left out metal sheets after cutting out of required shapes of sheets used in
production of LHB FIAT wagons.
Sheet portions left out after cutting by laser cutting machine.
Iron pieces and bits that are of not suitable to be welded with wagons
frame.
Metal fillings and residue left out during machining of LHB wagons.
2. Scrap from shell shop :
Left out metal sheets during cutting out upper and side frames.
3. Scrap from sheet metal shop :
Damaged or mutilated iron or steel sheet which are not suitable for
further use.
4. Scrap from furnishing shops :
Various types unused material like foams, leather, unused wooden parts
etc
5. Miscellaneous scrap :
Wooden scrap from carpentry shop.
Empty paint BOXES AND TUBES.

LIST OF SCRAP MATERIALS PRODUCED IN

BWEL MUZAFFARPUR
1.

PUNCHING, SHEET CUTTING ETC OF VARIOUS SIZES. SHAPES

AND THICKNESS, ETC.

91

2.

SCRAP OF MS SKELETON AND ITS CUTTINGS OF VAROUS

3.

SIZES. SHAPES AND THICKNESS UPTO 10 MM.

SCRAPS OF CUTTINGS OF MS PLATE SKELETON, BAR, RODS,

4.

STRIPS ETCOF VARIOUS SIZES. SHAPES AND THICKNESS.

SCRAP OF MS PLATE SKELETON AND ITS CUTTINGS OF
VARIOUS SIZES. SHAPES AND THICKNESS 10 MM AND ABOVE

5.

(CUTTING ALLOWED FOR LOADING PURPOSE ONLY)

SCRAP OF PCV INSULATED COPPER CABLE AND WIRE OF
DIFFERENT

SIZES,

SHAPES,

THICKNESS

AND

LENGTH

INCLUDING LEADS OF WELDING TORCHESWITH OR WITHOUT

6.

ATTACHEMENTS.
SCRAP OF EMPTY IRON DRUMS CAP 200 KG RELEASED FROM
BITUMEN

7.

COMPOUND

BROKEN/UNBROKEN

WITH

OR

WITHOUT LID AND RESIDUE.

MISC. SCRAP OF MS AND CR CONSISTING OF CUTTINGS,
PUNCHINGS, ANGELS, CHANNELS, CIRCLES, FINE MELTING
AND OTHER SMALL MANUFACTURING SCRAP OF SHOP,
SCRAPPED WINDOW BLANKS ETC OF VARIOUS SIZES, SHAPES
AND THICKNESS ETC. ALUMINIUM SCRAP CONSISTING OF
SHEET

CUTTINGS,

SKELETON

CUTTINGS,

OFF

CUTS

CUTTINGS, PUNCHINGS, ANGELS, CHANNELS, MOULDINGS,

EXTRUSIONS, PIPES, CONDUIT, CHEQURED SHEET CUTTINGS,
REJECTED AND CONDEMNED COMPONENTS OF ALUMINIUM,
8.

ETC.
ALUMINUM

SCRAP

CONSISTING

OF

SHEET

CUTTINGS

SKELTON CUTTINGS, OFF CUTS, CUTTINGS, PUNCHINGS,

ANGELS,

CHANNELS,MOULDING

EXTRUSIONS,

PIPES,

CONDUIT, CHEQURED SHEET CUTTINGS, REJECTED AND

9.

CONDEMNED COMPONENTS OF ALUMINUM, ETC.

SCRAP OF CR OFF CUT AND ITS CUTTINGS OF VARIOUS SIZES,
SHAPES AND THICKNESS UPTO 4 MM. SCRAP OF CR SKELTON

92

CARLINE TYPE AND ITS CUTTINGS OF SIZES, SHAPES AND

10.

THICKNESS UPTO 4 MM.

SCRAP OF CR OFF CUTS AND ITS CUTTINGS OF VARIOUS
SIZES, SHAPES AND THICKNESS MAINLY 4-6 MM INCLUDING

11.

CHEQURED PLATE OFF CUTS.

SCRAP OF CR SKELTEON AND ITS CUTTINGS OF VARIOUS

12.

SIZES, SHAPES AND THICKNESS 4 TO 6 MM.

SCRAP OF PVC FLOORING OFF CUTS OF VARIOUS SIZES,

13.

SHAPES, GRADES AND SHADES WITH OR WITHOUT GLUE ETC.

SCRAP OF USED AND CONDEMNED FERROUS SPARE PARTS OF
VARIOUS TYPES OF MACHINES, VEHICLES, EOT CRANES ETC.
LIKE

SILENCER

FLEXIBLE

CONNECTION,

TORQUE

CONVECTOR, CLUTCH PLATES, BRAKE SHOES, CONNECTING

ROD, GEAR LEAVER, AXLE SHAFT, THE ROD, FAN BLADES,
SHOCKERS, CYLINDER HEAD, ROLLER, CHAIN, HUB, MASTER
CYLINDER,

ROLLER

BEARINGS,

EOT

CRANE

WHEELS,

DIPLORY WHEELS ETC. AND OTHER FERROUS SCRAP OF

SPARE
14.

PARTS

WITH

OR

WITHOUT

NON

FERROUS

ATTACHEMENTS.
SCRAP OF MS AND CR REJECTED AND CONDEMNED WAGON
COMPONENTS RELEASED DURING MANUFACTURING LIKE
CANTRAIL, SOLE BAR, SIDE FRAME, END EXTENSION ETC,

15.

CUTTINGS, ANGELS, CHANNELS.

SCRAP OF MS SKELETON AND ITS CUTTINGS OF VARIOUS

16.

SIZES. SHAPES AND THICKNESS UPTO 10 MM.

SCRAP OFF CR OFF CUT AND ITS CUTTINGS OF VARIOUS SIZES,
SHAPES AND THICKNESS UPTO 4MM. MISC SCRAP OF
STAINLESS STEEL OF VARIOUS GRADES MAINLY FERRETIC
AND CONSISTING OF SHEET CUTTINGS, SKELETON CUTTINGS,
OFF CUTS, ANGLES, CHANNELS, CUTTINGS, PUNCHING
MOLDINGS, SHOP MADE REJECTED WAGON COMPONENTS

93

AND OTHER MANUFACTURING SCRAP OF VARIOUS TYPES,

GRADES AND SHAPES. SCRAP OF CR SKELETON AND ITS

17.

CUTTINGS OF VARIOUS SIZES.

SHAPES AND THICKNESS UPTO 4 MM.
SCRAP OF CR SLITTING TRIM CUT END WASTE IN COIL SHAPE

18.

OF VARIOUS SIZES, WIDTH UPTO 65 MM.

SCRAP OF MS SKELETON AND ITS CUTTINGS OF VARIOUS

19.

SIZES. SHAPES AND THICKNESS UPTO 10 MM.

SCRAP OF MS SKELETON AND ITS CUTTINGS OF VARIOUS

20.

SIZES. SHAPES AND THICKNESS UPTO 10 MM AND ABOVE.

SCRAP OF CR SKELETON AND ITS CUTTINGS OF VARIOUS

21.

SIZES. SHAPES AND THICKNESS UPTO 4 MM.

SCRAP OF CR TRIM CUT END WASTE SLITTING IN COIL SHAPE

22.

MAX. WIDTH UPTO 140 MM AND THICKNESS UPTO 6 MM.

SCRAP OF MS OFF CUTS AND ITS CUTTINGS OF VARIOUS
SIZES. SHAPES AND THICKNESS MAINLY 6 MM AND ABOVE
AND WIDTH MAINLY UPTO 200 MM INCLUDING CHEQURED

23.

PLATE OFF CUTS IF ANY.

SCRAP OF STAINLESS STEEL TRIM CUT END WASTE SLITTING
IN SHAPE OF VARIOUS GRADES MAINLY NON FERRATIC, AND
OF VARIOUS SHAPES, SIZES, THICKNESS ETC. MISC MIXED
SCRAP OF MS AND CR CONSISTING OF ANGELS, CHANNELS,
SMALL OFF CUTS, SHEET CUTS REJECTED AND CONDEMNED
SMALL WAGON COMPONENTS CUTTINGS, MANUFACTURING

24.

SCRAP, MOLDING, PIPES, SQUARE TUBES, MESH ETC.

SCRAP OF CODEMNNED FLOOR GRIDING MACHINES WITH OR

25.

WITHOUT ACCESSORIES.
SCRAP OF LIMPET/NFTC SHEET CUTTINGS OF VARIOUS SIZES

26.

AND GRADES AND SHADES.

SCRAP OF LIMPET/NFTC SHEET CUTTINGS OF VARIOUS SIZES,
SHAPES, THICKNESS, GRADES AND SHADES.

94

27.

SCRAP OF LP SHEET (SUNMICA) OF VARIOUS SHAPES, SIZES,

AND THICKNESS WITH OR WITHOUT PASTING OF PLYWOOD

28.

INCLUDING KACHRA TYPE SMALL STRIPS ETC.

SCRAP OF WOODEN SLEEPERS CUT PIECES OF DIFFERENT

29.

SHAPE & SIZES.

SCRAP OF REJECTED & CONDEMNED STAINLESS STEEL
WATER TANK MODULES WITH OR WITHOUT FERROUS

30.

ATTACHMENTS ETC.(9 NOS)

SCRAP OF LIMPET/NFTC SHEET CUTTINGS OF VARIOUS SIZES,

31.

SHAPES, THICKNESS, GRADES AND SHADES ETC.

SCRAP OF CONDEMNED FIRE EXTNGUISHERS OF FOAM
TYPES.

SCRAP MANAGEMENT AND IMPORTANCE

Such a large quantity of scrap needs a proper way of management and
disposal. Otherwise it would create wastage and environmental hazards.
The proper utilization, processing, disposal and other type of related
maintainance of various types of scraps is broadly termed as scrap
management.
Scrap management process differs from industry to industry. Scrap from
large and big industry usually serves as raw materials for small scale
industries and factories .
In case of small industries like in case iron or sheet metal industry scrap
management simply consists of activity in which scrap material is taken
from workshop to a scrap yard, where they are processed for later melting
into new products.
But in case of a large industry where different types of raw material is
used and different processes and operations are carried out a very
comprehensive method of scrap management is necessary for the
betterment of industry.
Thus we see that scrap management plays an indispensable role in
upliftment of the industry. Now we are going discuss the scrap
management in context of BWEL MUZAFFARPUR.

95

SCRAP
MANAGEMENT
MUZAFFARPUR

IN

BWEL

Scrap production in BWEL MUZAFFARPUR is one of largest in the

North India. Every year crores of scrap is produced in various workshops
of BWEL MUZAFFARPUR, whose proper management and disposal is
very necessary. Thats why scrap Management is very important aspect in
proper functioning of BWEL MUZAFFARPUR.
Specially for this purpose there is a scrap depot in the factory campus
where all the scrap and waste material is dumped and whole process of
scrap management is carried out from there.
Various poles and bins are designated and number for arranging different
types of scrap.
Different type of scrap is distributed at different places in scrap yard
according to the requirement and auction requirement.
Dy. CMM of scrap Depot is incharge of all the proceedings carried out
related to scrap in the factory.
Now the management of scrap starts right from the workshops.
In each and every workshop scrap bins are suitably placed where
different types of scrap is placed. This scrap is before hand distributed
according to its type, such that there is no need of differentiating scrap
after it reaches the scrap depot. These bins are actually large containers
which can be suitably installed on truck.
A large crane picks up these containers and puts it upon the trucks which
carries these scrap upto the scrap depot and unload them in the scrap
depot according to the designated place.
These places are actually designated according to the pole number or
heap number.
Now there is form known as Advise Note on which all the paper work
related to the transportation of scrap from the workshop to the scrap depot
takes place.

96

Person concerned in workshop fills the advice note and sends it along
with the scrap to the scrap depot. In scrap depot the concerned official
receives the scrap truck and further fills the advice note.
Pole number or heap number where scrap is unlocated is noted down.
Advise note is kept in records.
The size of scrap heap in depot is kept, keeping in mind various factors.
When the amoumt of scrap is large enough auction of this scrap is done.
Before auction various beforehead preparation are done.
Size of scrap heap is kept such that it is easier for the trader to carry the
scrap easily. If the scrap heap is smaller it will be easier for the trader or
the dealer carried to desired position, moreover less scrap heap means
less weight and less transportation costs for the trader and he will be more
encouraged to buy the scrap.
Certain minimum price is selected beforehand by the depot officials by
reviewing the present market prices of iron and other such kind of scrap.
Sometime special scrap such scrap of Mynmar wagons, include the taxes
also. Various traders or dealers are informed beforehand by various
means.
A special catalogue of scrap available is distributed among these traders
and dealers.
This catalogue tells aqbout the different types of scraps available, their
weight, minimum piece before auction and position where they are placed
in the scrap depot.
These traders are either from some small scale industries or just
moderators who further sell these scrap to other people.
The highest bidder or particular scrap gets to have that scrap.
This scraps serves as raw materials for these small factories.
Some scrap such that of iron and other metallic scrap is often remelted
and cast into other useful products. Other miscellaneous scrap such as
tubes, plastic, etc are also useful for some small scale.

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VARIOUS LOCATIONS FOR SCRAP IN SCRAP

DEPOT
In scrap Depot large amount of scrap is to placed in distributed manner so
that it is easy to distinguish various types of scrap and other information
related with it.
For this purpose scrap depot following type of division are done :
A) Sectors
B) Poles
C) Bins
Sectors: These are the broad classification of a certain area that has
certain amount and certain type of scrap lying there. These are
alphabetically numbered. There are sectors numbered from sector A to
sector H in scrap depot.
Poles: There are many poles which are numerically numbered. Below
these poles heaps and lots of scrap are placed.
Bins: These are cemented scrap bines where whole of scrap is dumped.
These again are numbered.
All of these are simply identification to know where and what type of
scrap is placed in the scrap depot.
In the catalogue also it is given that so much kg of scrap placed in given
secto or near the given pole or in certain beam.
This also helps the bidders and purchasers during the auction to easily
and properly identify and inspect the scrap.

98

TERMS AND CONDITIONS OF AUCTION SALE

OF SCRAP IN BWEL MUZAFFARPUR
1. ENTRY :
Its welcome for participating in auction to all bidders who accept and
abide by the terms and conditions of auction sale given here under.
All bidders intending to participate in the auction shall be charged Rs 15/each as entrance fee which is non returnable and every participating
bidder has to submit a demand draft of Rs 10,000/- each in favour of FA
and COAO/BWEL/MFZ payable at New Delhi issued by any
nationalized bank which ahall be normally returned after the auction is
over.
Any bidder who has deposited demand draft of Rs 10,000/- as entry fee
can participate in the bidding. If it found at any stage that bidder has not
deposited the entry fees, then the bids of such a bidder may be cancelled.
The lots put up for auction, can be inspected at any working day prior to
the auction.
The bidder can enter the scrap yard one hour before the commencement
of the auction.
The intended bidders who wish to participate in the auction should bring
authority letters on letter pad of the firm with name and address to whom
he represents.
They should produce Trade license ST/CST/No. on their letterhead to
participate in the auction at the Depot gate before commencement of the
auction, the demand draft and a copy of letter shall be kept at gate and
receipt will be issued to them.
Participants taking part in the auction have to mention reference of Sales
Tax Registration No. if there is any, at the time of entrance to the auction.

2. BIDDING:

99

It must be clearly understood by the bidder that auction document have

been issued to bim and he is permitted to bid in consideration of his
agreement to the condition here in after.
The highest bid given by the bidder for a particular lot will irrevocable till
final decision by the auction conducting officer.
The quantity declared against each lot/item is approximate. Mere
acceptance of bid by the auction conducting officer and deposition of the
cost by the purchaser shall not transfer the property in goods to purchaser
unless the lot/item is weighed, measured or tested as the case may be
warrant by the Depot Officer incharge of material on production of
delivery cost.
In event of any dispute arising out of or relating any bid, the item/lot in
respect of which the dispute arises shall be immediately put up for sale
against the last undisputed bidding.
The intending buyers must satisfy themselves on all points before bidding
goods I each lot of sold on As is where is basis and no warrenty is
given as regards size, quality, weight, description and the like. No sale
shall be invalidated by reason of any of the item or the items or the lots
being incorrectly described as regards the nature, quantity or quality or in
any other respect and no compensation shall be paid or allowed in respect
of any such fault or error of description.
Sale shall only be made to a single person/firm and not to combination of
two or more persons/firms as cosharer.
The auction conducting officer may at his discretion, without assigning
ay region, refuse to accept the bid of any bidder or demand a higher
percentage of amount of the bid as earnest money or the full amount
immediately after the fall of hammer.
The purchase shall sign the bid sheet prescribed by the Railway
Administration.
No re-sale by the purchaser shall be permitted in railway premises.
Bid not in accordance with the standard terms and conditions shall not be
entertained unless made in writing by the bidder and recorded in writing
on the spot by Auction Conducting Officer.
The Auction conducting Officer shall have power to ask any bidder to
leave the premises if he found to be obstructing or conducting hindrance
to smooth conduct of auction.

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Auction Supervising Officer is not bound to put the lots serially and
reserve the right to put any lot at any time during the commencement of
auction in interest of Railways.
Auction Supervising Officer can continue the auction till next day if
found necessary by the Railway Administration. Auction conducting
Officer can withdraw any lot from auction during or before the auction
without assigning any reason.
The Auction conducting Officer reserves the right to depart from the
program of the auction, if found necessary without assigning any reason
or giving any notice other than that verbally announced to the bidders,
present at the site of sale and to refuse to accept any other or to stop the
auction in the event of offer not being considered satisfactory.
The controller of stores may at his discretion make any changes or
departure, which he deems necessary from the forging standard of auction
sale of Railway stores before auction takes place.

3. Payments :
The purchaser of each item or lot shall give his name and full address on
the fall of the hammer and deposit with Railway Administration, the fixed
percentage or fixed amount whichever is more, of the purchase price in
cash/demand draft of any nationalized bank as earnest money vide clause
2.2. If any purchaser fails to comply with any of these conditions, the lot
or the lots in respect of which such failure occurs may, if the railway
officer supervising the sale considers fit be put again and resold treating
the previous bid as cancelled.
Subject to the clause 2.7, the purchaser has to deposit the earnest money
to the cashier immediately on the fall of the hammer as per the following
scale:
100% for sale value and including Rs 10,000/-,
.25% for sale value 10,001/- to 1,00,000/- subject to minimum Rs
10,000/.10% for sale value exceeding Rs 1,00,000/- subject to minimum of Rs
25,000/ Time limit for deposit of balance money:
a) Lots having sale value upto 5 lacs- within 10 days
b) Lots having sale value above 1 lac-wiyhin 29 days

101

The earnest money will be forfeited in case balance payment is not

deposited in 50 days.
The balance amount to be deposed in the accounts department in the form
of demand draft or cash.
The material will be delivered only after actual realization o amount of
demand draft.

4. DELIVERY:
Free delivery period for lifting up of sold matrial:
a) Misc. ferrous and non ferrous scrap upto 5 lac-40 days.
b) Misc. ferrous and non ferrous material above 5 lacs-50 days.
Delivery order will be issued at the address mentioned in the bid sheet.
If the bidder does not want to lift the material himself and desires to
authorize to some body else, in such case he has to submit authority letter
on stamped paper duly tested by notary public.
The quantity of lot mentioned in auction catalogue is approximate. Actual
quantity may differ at the time of delivery of the material.
When material are weighed, if any shortage, which may occur between
the actual estimated weight of lot or group of lots sold to the purchaser,
shall not be made good from any other material I the depot elsewhere.
The excess material shall only be delivered subject to the direction of the
railway administration who may refuse delivery of the excess material or
any quantity there of without assigning any reason whatsoever.
During the course if delivery if any material is found from the lot which
is different from as mentioned in the description, the railway
administration reserves the right to take out that material from the lot.
Delivery of material will not be given on gazette holidays/Sundays
observed at BWEL/MFZ. Normally material will be delivered on all
working days except Sunday between 09.00 to 17.00 hrs.
Unless otherwise specified picking, sorting, cutting or breaking of the lot
will not be allowed in Railway Premises. Delivery must be taken as the
material came to hand.
Unless specifically mentioned Railway Administration will not help in
loading of the material.
Purchaser shall make his own arrangements for removal of materials. The
purchaser shall have to make good any loss or damage caused to the
railway.

102

Lots of ferrous material weighing upto 5 MT, the purchaser will have to
take the delivery at one time(the delivery not to be given in part)
The weight of the lorries will be done by the authorized witness team.
No delivery order will be issued without sales tax form or without
depositing the sales tax and if the purchaser does not comply with, he will
deposit the amount of sales tax first otherwise The Railway
Administration may refuse to deliver the material.
The lots of two or more purchasers shall not be delivered in same lorry.
The Railway Administration shall not be responsible for death injury,
incident to purchaser or any of the representative or any of the labourer
arising out of sale and delivery.

5. GENERAL :
As Per Railway Boards hazards waste rules 1989 dated 30/06/1999 letter
no/85/RSS7092/OILS, the non ferrous metal waste and scrap like lead,
copper and zinc waste, waste oil and used batteries are to be sold only to
actual reprocessor. The bidder has to submit the required certificates at
the time of auction itself.
In the event of any question/dispute of difference arising under these
conditions or any in connection with, the contract the same shall be
referred to the sole arbitrator appointed by the General Manger of BWEL
MUZAFFARPUR.
It is a term of this contract that no person other than the person appointed
by the General Manager of BWEL, MUZAFFARPUR as aforesaid should
act as arbitrator and if for any reason that is not possible, the matter is not
to reffered to the arbitration at all. The arbitrator may, from time to time
with the consent of all its parties to the contractor enlarge the time of
making award. The venue of arbitration shall be decided by the arbitrator.
Subject as aforesaid, the Arbitration and Concilliation Act 1996 and the
rules the reunder and any statutory modification thereof shall apply to the
arbitration proceeding in this clause.
It is understood that all the participationg bidders have duly inspected all
the lots put up for auction and understood all above terms and conditions
before participating in the auction and these are acceptable to them
Railway Administration will not be responsible for any ignorance or
misunderstanding.

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SCRAP MANAGEMENT SYSTEM (S.M.S.)

Scrap management system (S.M.S.) is specially designed computer
software that is used for almost full management of scrap in scrap depot
of BWEL Muzaffarpur.
Almost all the operations from making of advicer not to keeping auction
records is vdone through S.M.S.
It has simplified the process of scrap management by decreasing the
manual labour.
It is better way of keeping records safe and easily approachable then
through files etc.
All the information regarding the scrap lot like weight, type, quantity,
location etc is feeded into the S.M.S. for further processing.
S.M.S. is password protected, so only the incharge of scrap depot or some
designated person can operate this program. So no body else can temper
with the records. Thus it is good system with the respect to the security
also.
A printer has been attached to the computer. Thus we can easily print out
details and reports from the S.M.S.
Although there are numerous operations that are performed through the
S.M.S., few of the important one are as follows:
A. Preparing the advise note
B. Preparing staff gate pass
C. Preparing Bidder Gate Pass during auction
D. Preparation of auction catalogue
E. Various types of reports
F. Keeping record of payments and balance records during auction.

A.
B.
C.
D.
E.
F.
G.

Main Menu of S.M.S. consists of following sub-menus :

Master
Despatch
Lot
Auction
Delivery
Reports
Exit
Master has been sub divided into following parts :

104

1.
2.

1.
2.
3.
4.
5.
6.
7.
8.

1.
2.
3.
4.
5.
6.

1)
2)
3)

Codes
PL Master
Dispatch has following sub menus :
Dispatch
Bin Detail
Bin Transfer
Weigment Detail
Club Weigment detail
Receipt Order Detail
Stock Verification
Dispatch Reports
Advice Note
Dispatch Register
Weigment Register
Weigment register with RO
Receipt Order Register
Receipt Order Register with Lot
Shop Wise Receipt
PL wise Receipt
PL wise Transaction
PL wise Book Average Rate
Bin Transaction
Balance Detail of an Item
Lot has following sub-menus
Lot Formation
Lot Survey
Serveying Team
Survey Feedback
Release Lot
Lot Reports
Survey Report
Lot Status Register
Vie Lot History
PL wise Transaction
PL wise Book Average Rate
Bin Transaction
Balance Detail of an Item
Auction has following sub-menus :
Auction Detail
Auction Catalogue
Bidder registeration

105

4)
5)
6)
7)

1)
2)
3)
4)
5)
6)
7)
8)

Bid Lot
Entry Free Return
EMD CR Entry
Auction Reports
Auction Catalogue Report
EMD Deposit Slip
Bid Sheet Report
Delivery has following sub-menus :
Delivery Order Detail
Staff Issue
Staff Gate Pass
Shop Issue
Shop Gate Pass
Sale Issue
Bidder Gate Pass
Do/ Issue Reports
Reports has many submenus but these are also approachable through
previously discussed menus. Here all the reports are grouped together for
easy approach.
Exit is used to exit SMS

TARGETS
Every Year BWEL, MUZAFFARPUR decides certain target for scrap
sale. His helps in performing more efficiently in Scrap Mangement. This year
target for scrap sale is Rs 16 crores.

CONCLUSION

106

Even though the scrap management in BWEL MUZAFFARPUR is fully

efficient and capable in itself, that it needs no more alterations. I think few
minor improvement in its functioning may slightly help in better management
of scrap.
Better communication link between the workshops and the scrap depot can be
developed for faster and efficient transportation of scrap. Copmputors at
workshop and the scrap depot should be linked through networking such that
there is no need of advice note and all formalities could be done on computer
only. This surely will result in faster scrap management.

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BIBLIOGRAPHY
LIBRARY OF B.W.E.C.L
INTERNAL RECORDS OF B.W.E.L.
WWW.GOOGLE.COM
WWW.WIKIPEDIA.COM
WWW.YAHOO.COM
JOURNALS OF B.W.E.C.L
INFOMATION FROM EMPLOYEES OF B.W.E.C.L.