To go ahead with Chhapra project

8220;While no formal decision has been taken on the route to be taken for setting up RWF, we are currently going through the departmental route and tenders for civil and other works are being invited,8221; a senior Rail Bhawan official told The Indian Express.

However, the ministry is still open to the JV route if any offer comes later on. Whatever money Railways is spending now can be converted into equity in case a JV materialises later on,8221; he added.

Insiders say this move is aimed at sending out a signal to private international players that Railways is not 8220;overly desperate for PPPs8221;. But since Griffin is a monopoly in manufacturing rail wheels, Railways knows there will be no other player bidding for Chhapra.

Railways had entered into talks with the company in 2006. However, it failed as Griffin allegedly demanded a Rs 10 crore upfront for 8220;technologically advancing the existing Rail Wheel Factory at Bangalore8221; and a 8220;royalty amounting to 5 per cent of the Bangalore unit8217;s annual earnings.8221;

First announced by Lalu in his Budget speech of June 2004, the project was set into motion on April 1, 2005.