Business

Wagon industry hails budget proposals

KOLKATA: The wagon industry, which is mostly concentrated in West Bengal, is happy with the Railway budget’s emphasis on capacity-creation, especially the thrust on the dedicated freight corridor. However, Railway Minister Mamata Banerjee’s proposal to set up a new coach factory at Kanchrapara in West Bengal evoked mixed response as the industry felt that such projects were best left to the private sector.

Texmaco, a leading wagon-manufacturing company belonging to the K. K. Birla group, sees itself as a major beneficiary of the 2009-10 Railway budget. Senior President Ramesh Maheswari told The Hindu that moving freight by railways was the best way to combat recession, especially at a time when crude prices were increasing and a fuel price-hike had been announced. He, however, felt that the railways’ loading target might have to be revised upwards as it seemed too conservative.

Mr. Maheswwari was, however, opposed to the idea of the Railways getting involved in setting up coach factories saying that such tasks were best left to the private sector. “The government is saddled with a huge fiscal deficit and at this juncture, this does not seem to be very advisable”.

Umesh Chowdhury, Vice-Chairman and Managing Director, Titagarh Wagons, said that the increased orders for wagons were a welcome sign in recession times. Under its rolling stock programme, the Railways’ plan to buy 18,000 wagons against 11,000 in 2008-09. He said that the Minister had, in her previous tenure, also encouraged the private public partnership (PPP) model of growth which not only ensured easier funding but also a more disciplined implementation. Her statement about building stations, logistic parks and a host of other infrastructure around the PPP model was definitely a step in the right direction.

He said that Ms. Banerjee had rightly decided to leverage on the huge resources of railways — unutilised land and physical accessibility by way of tracks — for building physical and communication infrastructure.

Pawan Ruia, Chairman of Jessop, said that the Railway Minister had shown vision by putting the public-private partnership in the focus of the Rail Budget 2009-10. From the proposed EMU coach factory at Kanchrapara to upgradation of the important stations to international standards, or developing multi-functional complexes, she had opened a new vista for using the resources and expertise of the private sector.

Jessop, which is into wagon manufacturing, sees a major boon in the over 60 per cent increment in the wagon procurement target. Mr. Ruia felt that the proposed railway land bank was yet another reflection of Ms. Banerjee’s keenness to address the pressing problems of the manufacturing industry. The chambers of commerce here too were happy with the budget’s pro-people, development-oriented stance.

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