Have orders for more than 6,000 wagons: Texmaco

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Have orders for more than 6,000 wagons: Texmaco

Ashok Vijay, Vice President, Texmaco, expects dedicated freight corridors to be announced in this year's Railway Budget. He feels the primary focus needs to be on expansion of metro-rail projects all over country. According to Vijay, all orders received last year are for new design wagon. "Our order book in hand is for more than 6,000 wagons."

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Texmaco Infra See previous management interviews See what other Experts & Brokerages are saying about Texmaco Infra Texmaco Infra BSE | NSE 25/05/12 Are Mutual Funds betting on Texmaco Infra?

The Railway Budget is on June 1 and a number of companies catering to the Indian Railways are seeing their stocks buzzing. One such supplier is Texmaco, which is the largest supplier of wagons to the Indian Railways. So, what does the company wish to see in this Railway Budget?

Ashok Vijay, Vice President, Texmaco, expects dedicated freight corridors to be announced in this year's Railway Budget. He feels the primary focus needs to be on expansion of metro-rail projects all over country. "The Indian Railways have ambitious expansion plans in the 11th Five Year Plan."

According to Vijay, all orders received last year are for new design wagon. "Our order book in hand is for more than 6,000 wagons."

Also see: Texmaco to gain considerably from rise in wagon orders

Here is a verbatim transcript of the exclusive interview with Ashok Vijay on CNBC-TV18. Also see the accompanying video.

Q: What are your expectations from Mamata Banerjee's first Budget?

A: We all have great expectations from Mamata's Budget. In fact, railway is a sector which is buzzing. In India, it really needs to grow. In fact, the Railways have ambitious expansion plans in the 11th Five Year Plan. This need to be achieved by Railways to see to it that whatever projects they have planned for the country's economic growth is actually taken care of.

What basically we are looking at is the dedicated freight corridor which is the one important segment. This is not only the east and west corridor. We are also looking for other corridors like the Kolkata-Mumbai, Delhi-Chennai, and Kharagpur-Vijayawada. All these segments are very vital for the growth of economy. India is the kind of country where things just cannot move by the road.

This Budget is primarily going to focus on the eastern-western corridor. Another aspect is the expansion of the metro rail projects which are going to come up in all cities. India has got more than 30 cities with a population of more than 2.5 million. All these cities need to get expanded metro service. Today, we hardly have metro services in Delhi and Kolkata. It is going to come up in Bangalore, Mumbai, and also Chennai. But we need to have more than 30 more cities to come into the metro system. It's a huge expansion and it is an area where the country can look up. This is  also our expectation from the Railway Minister.

We have been the leader in wagon manufacturing in the country for the last five decades. We are expecting the Railways to acquire 100,000 units in the 11th Five Year Plan. Now, they have got an exciting policy about using wagons built using new technology whereby wagon producers can themselves offer new technology and new design which can give them higher payload to tare ratio.

Huge expansion plans are there for a company like Texmaco. One area which we would like to see is the diesel and electric locomotive which was going to come up via PPP (public private partnerships). Subsequently, this was scrapped by the Railways and brought into the Railways' own division. This should now also be brought into PPP.