§1What this business is
EN-45 spring steel bar is sheared to length, heated to 950–1,000°C, and formed into the clip shape on a power press with three sets of dies. Clips are quenched in oil, checked for size and hardness, tempered at about 350°C for toughness, and tested against the RDSO drawing (T-1892) including the deflection test. Clips loosen and fall out with vibration, so the railways keep buying them. If rail demand is slack, the same forge can make other forged parts for auto and machinery makers.
Capacity: 600 MT of clips a year worth ₹2.58 crore, plus 120 MT of scrap.
§2Is it right for you?
Who it is for
A forging unit owner or engineer who can clear railway vendor approval and bid in tenders.
Who it is not for
Someone who does not want to deal with government tenders and inspections.
Advantages
- Clips are a consumable for the railways, so demand repeats
- The profile also names Middle-East railways as a market
- The forge can switch to auto and machinery forgings
- Rented premises keep fixed cost down
Drawbacks
- Sales depend on railway tenders and vendor approval
- Testing equipment is costly (a ₹4.50 L universal testing machine)
- Hammer noise and furnace smoke need control
- Tight RDSO specifications — failed lots are rejected
Skills you need
- Hot forging and die setting
- Quenching and tempering spring steel
- Testing to RDSO and IS 3195
- Railway tendering
Why difficulty 4/5: Hot forging, strict railway testing and tender-based selling.
§3Market
Who buys
- Indian Railways (zonal railways and track contractors)
- Railways in Middle-East countries
- Automobile and machinery makers (other forgings)
How it sells
- Railway tenders after RDSO vendor approval
- Supply through track-laying contractors
Good to know
- The profile says clips loosen or come out of their jaws with vibration, so they are a consumable.
- It suggests using spare capacity for other forged items when rail demand is slack.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Shearing machine, 1 in capacity | 1 | ₹85,000 |
| Power press | 1 | ₹2,00,000 |
| Blanking machine, 100 MT | 1 | ₹1,50,000 |
| Oil-fired heat treatment furnaces, 650 kg an hour | 2 | ₹3,25,000 |
| Oil-fired tempering furnace | 1 | — |
| Pedestal grinders, 12 in wheel | 2 | ₹70,000 |
| Universal testing machine | 1 | ₹4,50,000 |
| Deflection testing machine | 1 | ₹50,000 |
| Rockwell-cum-Brinell hardness tester | 1 | ₹35,000 |
| Diesel generator set, 30 kVA | 1 | ₹1,25,000 |
| Dies, tools and fixtures | 1 lot | ₹1,75,000 |
From: DC-MSME project profile — Rail Elastic Clip (2002)
- EN-45 spring steel rounds, 20–22 mm60 MT a month at ₹30,000 a MT in the profile
- Light diesel oil for furnaces10,000 litres a month in the profile
- Quenching oil
From: DC-MSME project profile — Rail Elastic Clip (2002)
§5Licences & registration
- Udyam registration
- GST
- Vendor approval with RDSO / Indian Railways for track items
- State Pollution Control Board consent (furnace and noise)
- Factory licence under the Factories Act
- Registration on the GeM / Indian Railways e-procurement portal for tenders
§6Schemes & subsidies
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
The profile's project cost (₹87.14 L) is above the PMEGP limit for manufacturing; CGTMSE covers loans without collateral, and Stand-Up India suits SC/ST or women founders.
§7Money
How the investment is worked out: DC-MSME profile (Branch SISI Varanasi, Sep 2002): fixed capital ₹23.82 L (production machinery ₹11.60 L, testing equipment ₹5.85 L, 30 kVA DG set ₹1.25 L, electrification ₹1.87 L, dies and fixtures ₹1.75 L, office ₹0.50 L, pre-operative ₹1.00 L) + working capital for 3 months ₹63.32 L = ₹87.14 L. Premises rented at ₹10,000 a month.
Working capital: Working capital is ₹63.32 L for 3 months; spring steel is the main cost — 60 MT a month of 20–22 mm EN-45 rounds at ₹30,000 a MT.
Prices from 2002 — machinery, raw material and wage costs will be much higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- The profile prints no HS code; confirm the 8-digit ITC(HS) line with DGFT or a customs broker.
- Foreign railways usually need their own approval before buying.
§9Risks — where people fail
- Few buyers — mainly Indian Railways
- Payment delays on government orders
- Steel price swings between bid and supply
- Rejection in railway inspection
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working elastic rail clips (forged spring steel) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Elastic Rail Clips (Forged Spring Steel)?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.