Indian Railways has gone on a course correction following revelation of over-staffing at some of its factories by a committee on public procurement, headed by former chairman of Competition Commission of India Vinod Dhall.

The national transporter has sent two of its senior officials to the US to study the best practices in optimal utilisation of machinery so as to reduce the number of workers. The move is also intended to cut cost at railway production units.

Financial commissioner Pompa Babbar and member (mechanical) Sanjiv Handa are currently in the US on a two-week trip to visit factories and understand their production techniques. The techniques would be used at the wheel manufacturing factory being set up at Belapur in Chhapra, Bihar.

?We are heading for the US to understand how to use plant and machinery at a railway factory in an optimal manner. This is also to improve productivity of workers at the wheel factory,? Babbar told FE before leaving the country.

The step has been taken after the Dhall committee pointed out in June that Chittaranjan Locomotive Works and Diesel Locomotive Works are overstaffed and their workers do negligible value addition. The panel also revealed that Diesel Locomotive Works in Varanasi employs 6,000 workers even though it just assembles parts purchased from outside. Chittaranjan Locomotive Works has 12,000 workers.

Utilising machinery at an optimum level is expected to reduce the requirement for manpower, resulting in reduction in expenditure on salaries and allowances. ?It will certainly reduce the number of workers,? said Babbar. The wheel factory at Chhapra could have a maximum of 900 workers.

Railways is already in cost-cutting mode. Starting this financial year, it has imposed restrictions on re-appropriation of funds sought by its zones, to minimise misuse of money on unnecessary activities.

Meanwhile, railways is yet to firm up a date for starting operations at the Chhapra factory, set up at an investment of over R1,400 crore. Earlier, it was proposed to start by July this year.

This is the second wheel factory to be operated by the railways.