September 07, 2008

Private wagon makers welcome Railway Budget

It is reported that private wagon makers are happy over union railway minister’s proposal for almost doubling the procurement size and also increasing the number of high margin stainless steel wagons compared to mild steel wagons.

Mr Ramesh Maheshwari president & CEO of Texmaco said that “The stainless steel wagons constituted marginal orders in relation to the total wagon orders in 2007-08 but in 2008-09, it could be substantially higher. Indian Railways’ decision that from now on only stainless steel coaches would be procured is also regarded favorable for Texmaco as it has a 30% of share in domestic wagons market and also produces coaches."

Mr Umesh Choudhary MD of Titagarh Wagons said that the price gap between the lower end wagons and higher end wagons is increasing and the price divergence could as high as 50% or more.

Mr A Mondal MD & CEO of Stone India Limited said that “The Railway Budget is positive and will augur well for the railways and our company. There are many things in the Railway Budget that are positive. We have put many of our patented products in the railway system. There are several advanced electronics products that we have developed for the Indian Railways.”

Mr Lalu Prasad Yadav union railway minister had earlier said that Indian Railways is planning to procure 20,000 wagons in 2008-09 against little over 10,000 wagons in 2007-08.