Date:20/07/2006 URL: http://www.thehindubusinessline.com/2006/07/20/stories/2006072002420700.htm

Back Railways to finalise order for 9,000 wagons soon

Mamuni Das

Expects delivery of 10,200 wagons in the current fiscal

On the track
The Railways hopes to acquire 2,000 wagons through the WIS
The wagon orders are for the public sector units and private wagon manufacturers
Also processing global tender for 7,900 wheel sets

New Delhi , July 19

Indian Railways plans to finalise its order for 9,000 wagons soon. The wagon orders are for the public sector units and private wagon manufacturers in the country.

They include Burn Standard, Braithwaite, Bharat Wagon, Bridge and Roof, and Southern Structurals in the public sector fold under the Department of Heavy Industries.

The private sector companies include Texmaco, HEI, Modern, Besco, Titagarh and Jessops.

"We are in the final stage of decision for placing our orders for wagon supply. It should be finalised soon," said Railway Ministry sources, adding that they expect part delivery of these wagons during the current financial year.

Expected delivery

The Railways is trying to get physical delivery of 10,200 wagons in the current financial year, which, it expects, would be met by a mix of its outstanding orders and present order.

From the above-targeted delivery, 1,606 wagons have already been delivered in the first quarter ending June 30 of 2006-07 fiscal.

Delivery of another 6,581 wagons, for which there are outstanding orders, is expected from various domestic manufacturers including the Railways' own workshops, sources told Business Line.

The 6,581 wagons include 5,000 wagons, which are to be delivered by manufacturers outside the Railways' captive units.

Delivery of about 2,000 wagons is expected to be met from the present order being finalised.

Wagon investment scheme

Apart from the above deliveries, Indian Railways also expects to acquire another 2,000 wagons through its wagon investment scheme (WIS) in the current financial year. The WIS provides for freight customers of the Railways to finance wagon acquisition and in return, they get freight rebates and assured allotment of rakes every month. In the first quarter of the current financial year, the Railways has already received delivery of 468 wagons through the WIS. "Last financial year, 292 wagons were added to the Railways' rolling stock through the WIS," said sources.

wheels sets tender

The Railways is also in the process of finalising an order for 7,900 wheel sets of BOXN wagons. However, the Railways may have to shell out almost double the charges for these imported wheel sets against what it pays to its captive wheel manufacturing units.

As for locomotives and coaches, it plans to acquire 150 diesel locomotives and 150 electrical locomotives from its captive units this fiscal. As for coaches, it expects to acquire 2,821 coaches (including electric multiple units) this year.