August 29, 2008

Indian Railway frame new wagon leasing policy

Exim News Service reported that Indian Railways, which is asking private sector to invest in the wagon building program, is now finalizing a new policy to permit private players to procure wagons on lease without investing in them. So far, only Indian Railways can lease out wagons.

The report cited an Indian Railway official as saying that "Once the wagon sector is opened up for private players, it would bring new design and new technology to wagon manufacturing and maintenance."

The proposed wagon lease scheme may allow private players to invest in producing special kinds of wagons and lease them to the customers of the Indian Railways. Under the current wagon investment scheme, customers have to buy their own wagons to transport goods.