The Board of Titagarh Rail Systems Limited (TRSL) sanctioned the formation of a Joint Venture Company (JVC) with Bharat Heavy Electricals Limited (BHEL). This JVC is a special purpose vehicle intended to manage the Maintenance Obligations for Vande Bharat Trains, fulfilling the requirements of the earlier Manufacturing-cum-Maintenance Agreement. Additionally, the Board approved furnishing a corporate guarantee for the Wholly Owned Subsidiary, Titagarh Naval Systems Limited (TNSL), regarding an ONGC tender.
Formation of Joint Venture with BHEL Approved
The Board of Directors of Titagarh Rail Systems Limited (TRSL), during its meeting on 19th March, 2026, gave formal approval for establishing a Joint Venture Company (JVC) in partnership with Bharat Heavy Electricals Limited (BHEL). This entity will serve as a Special Purpose Vehicle dedicated to handling the Maintenance Obligations associated with Vande Bharat Trains.
This strategic alliance is being executed in accordance with the prior Manufacturing-cum-Maintenance Agreement (MCMA) entered into with the Ministry of Railways, Government of India, under the Make-in-India initiative.
The Board has authorized Shri Umesh Chowdhary, Vice Chairman and Managing Director, to finalize the Joint Venture Agreement (JVA), including any necessary modifications, and to nominate the official representative for signing the agreement on behalf of TRSL. The detailed regulatory disclosures regarding this JVA will be submitted upon its successful execution.
Corporate Guarantee for Subsidiary’s Bid
In a separate key decision, the Board approved the furnishing of a corporate guarantee. This guarantee will be provided in favor of Oil and Natural Gas Corporation Ltd. (ONGC), specifically to support the bidding process undertaken by Titagarh Naval Systems Limited (TNSL), which is a Wholly Owned Subsidiary of TRSL, in a tender floated by ONGC.
The related detailed disclosure confirms that TNSL is the beneficiary of the guarantee. The transaction is deemed to be conducted on an “Arm’s Length basis”, and currently, there is no anticipated impact of these guarantees on the listed entity, TRSL, itself.
Meeting Concluded
The Board meeting commenced at 02.30 P.M. and concluded promptly at 03.00 P.M. on the date of the announcement.
Source: BSE
