Government's seizure of Hindustan Motors factory property upheld by the Supreme Court
**Titagarh Rail Systems Expands Operations in West Bengal**
Titagarh Rail Systems (TRSL) has taken a significant step forward in its growth journey, securing a 99-year lease agreement with the West Bengal government for a 40-acre land parcel in Uttarpara. The agreement, worth ₹126.63 crore, comes as part of the state's initiatives to repurpose industrial land for increased productivity.
The newly acquired land, which adjoins TRSL’s existing 34-35 acre facility, will be used to establish additional production infrastructure, create dedicated areas for forming, testing, and commissioning of metro coaches and Vande Bharat trains, and set up a test track for comprehensive performance and safety assessments before train or coach delivery.
With this expansion, TRSL aims to significantly increase its production capacity. The company currently manufactures around 300 coaches annually, a figure that is expected to reach approximately 850 coaches per year by FY28. The long-term goal is to increase production capacity to about 1,200 cars annually over the next 4-5 years, with a significant focus on metro coaches and Vande Bharat train sets. Each metro coach is valued at approximately Rs 10-12 crore.
The 40-acre land was originally part of the Hindustan Motors property, which was the erstwhile manufacturer of the iconic Ambassador car. Hindustan Motors had challenged the West Bengal government's right to reclaim the unused land, but the Supreme Court upheld the decision, confirming the State's right to resume the land.
TRSL, in partnership with Bharat Heavy Electricals Ltd, launched a production line for sleeper variants of Vande Bharat trains earlier this year at the Uttarpara facility. Sleeper train prototypes are expected to roll out in 2026. To support this expansion, TRSL is raising Rs 200 crore via a promoter group issuance, aimed at funding state-of-the-art machinery and working capital, which also signals promoter confidence in growth plans.
The groundwork preparations for the expanded facility are ongoing, and the expanded operation is expected to be operational within nine to twelve months. This development is set to significantly boost TRSL’s capacity to produce and commission metro and Vande Bharat train coaches on the strategic site in Uttarpara, West Bengal.
This news was published on July 16, 2025.
- Despite the ongoing legal challenges regarding the reclamation of the Hindustan Motors property, TRSL's partnership with the West Bengal government has been confirmed, paving the way for potential policy-and-legislation changes in the future that might affect general-news and politics.
- The subscription of state-of-the-art machinery and working capital by TRSL, to support its expansion, may signal investors to look closely at the growth trajectory of the company in policy-and-legislation related to industrial development and transportation infrastructure.
