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MACHINIST - Indian Railway to acquire 18,000 new wagons during 2009-10

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Home arrow News arrow Railway arrow Indian Railway to acquire 18,000 new wagons during 2009-10

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Indian Railway to acquire 18,000 new wagons during 2009-10
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Written by Ganesh   
Saturday, 04 July 2009

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New Delhi: During 2009-10, the Indian Railways plan to acquire 18,000 new wagons against 11,000 in 2008-09. Announcing this in Parliament today, the Minister of Railways, Mamata Banerjee, said that there was a growing demand for wagons in railways.

The ministry also proposes to take over the wagon units of Burn Standard Co. Ltd. (BSCL) and Braithwaite & Co. Ltd. (BCL), under the Ministry of Heavy Industries. During the year 2008-09, the Government released Rs 8.38 crore to BSCL, Rs.3.76 crore to BCL for modernization and upgradation of production facilities.

During 2008-09, BSCL has registered a net loss of 199.92 crore INR (Prov.) and a loss of 151.29 crore INR during 2007-08 (Actual). During 2008-09, BCL has registered a net profit of 1.42 crore INR (Prov.) and a profit of 0.55 crore INR during 2007-08 (Actual).

The proposal to acquire acquire 18,000 new wagons is good news for the domestic wagon manufacturing firms.

VRS Natarajan, CMD, BEML felt that the budget was very encouraging and would increase the business of coach builders and manufacturers.

The minister also proposed premium freight service for container movement with assured transit time and a mega logistic hub alongside eastern and western dedicated freight corridors.

Rail Minister Gives the Right Direction: CII President

In the 2009 budget, the Hon’ble Minister has taken a very forward looking approach and laid emphasis on PPP initiative to various innovative and constructive projects such as augmentation of wagon fleet, introduction of modern wagons, modern coaches, locomotives, modernisation of railway stations.

CII welcomed the partnership with the private sector, opening up yet another avenue for industry to participate in the spectacular growth of Indian Railways.

The pro-people, pro-industry and pro-economy Railway Budget, 2009 presented by the Railway Minister will create a win-win situation for all – the railways, the wagon manufacturers, heavy industries and the common man.

With both passenger and freight earnings growing at double digit rates, the Railways were able to earn a cash surplus of Rs  17, 400 Crores in 2008-09, even as it’s operating ratio  is 92.4% due to the sudden load on account of increase in wage bill as a result of implementation of Sixth Pay Commission.

Railway Budget 2009-10 is progressive and a forward looking- FICCI President


The railway budget 2009-10 is clearly a progressive and a forward looking budget”, said Mr. Harsh Pati Singhania, President, FICCI. The Minister has mooted a number of projects that will carry railways to the next technology level.

"FICCI is happy that this budget is very much in line with industry expectations. The initiative to develop cold storage cargo handling facilities will prevent the wastage of food and vegetables and this is an initial step towards ushering in the second green revolution in the country", said Mr. Singhania.

"The industry is pleased that the minister has not increased freight tariff, provided there is no re-classification of the tariff structure", he added

The important announcements like linking industrial clusters to markets, introduction of several projects under PPP mode and setting up of land banks for commercial and industrial use of railway land would contribute to develop markets and creating demand.

Last Updated ( Saturday, 04 July 2009 )
 
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