Wagon industry welcomes freight corridor
The wagon industry has welcomed the announcement of the freight corridor as it would result in 25% rise in wagon procurement.india Updated: Feb 24, 2006 17:57 IST
The Railway budget may not have met the expectations of many in terms of new railway lines and trains in the eastern region, but the wagon industry here has welcomed the announcement of a new freight corridor which would result in 25 per cent rise in wagon procurement.
"The hike in wagon procurement will boost the private sector in the industry," Titagarh Industries chairman JP Chowdhury said reacting to the budget proposals.
The wagon industry is pegged at Rs 2,000 crore as per industry estimates.
However, Texmaco president and CEO Ramesh Maheswari expectations were not met in the budget proposals.
"We welcome the announcement, but the proposed procurement of wagons by 25 per cent will be wholly inadequate if we consider the actual ordering level and offtake by the Railways in the last two years. In my opinion the hike should be at least 100 per cent of the present level," Maheswari said.
The average order by the government in the last five years has been 6086 vehicle units and actual procurement will be 5553 vehicle units, he said.
Plans for special industry specific and modern wagons has also been announced to modernise and improve the freight business. The RS 22,000 crore freight corridor will also boost the sector.
These initiatives directly impact the wagon sector which is concentrated in the eastern region with almost 90 per cent of the wagons supplied by the private sector, he said.