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Last Updated : Apr 17, 2018 02:25 PM IST | Source: Moneycontrol.com

Railways mulls buying new wagons worth Rs 9,000 crore in 3 years: Report

In FY18, Railways had procured less than 8,000 wagons against the budgeted allowance of Rs 12,000

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The Indian Railways is planning to buy 38,000 new wagons worth Rs 9,000 crore over the next three years in a bid to step up its game in goods transportation, according to a report in The Economic Times.

“Most of this procurement will be because the freight transportation by railways is gradually picking up. Some of it will be replacement as well as we plan to include higher capacity wagons to our fleet,” a senior railway ministry official told the paper.

India's rail freight volume rose by 53 million tonnes (mt) to 1,162 mt last year. For FY19, the Indian railways has a freight loading target of 1,216 mt, which will fetch it Rs 1.21 lakh crore or about 60 per cent of total targeted revenue for the year.

In FY18, Railways had procured less than 8,000 wagons against the budgeted allowance of Rs 12,000.

Alongside, the railways has also launched several freight schemes to increase its share in goods transportation. Railways' dominance in the goods transport sector has reduced to 30 percent owing to the vibrant roadways connectivity, which the government is planning to revive.

The addition of new wagons are likely to cater to the increasing demands of consumers.

“We have been unable to serve a lot of demands because of unavailability of rakes. Now, we have told our bulk consumers that they would get assured rakes throughout the year. Hence, this bulk addition of wagons makes a lot of financial sense for us,” the official added.

The government's move will also benefit manufacturing companies such as Texmaco Rail and Engineering, Titagarh Wagons, Jindal Rail and Jupiter Wagons.

The ministry has decided to invite for bulk tenders under the bucket filling method so that the lowest bidder may have the option to supply all the wagons in a fixed time frame, the report said.

If the lowest bidder is not able to serve, the second lowest bidder will get the chance to supply the tendered quantity.
First Published on Apr 17, 2018 02:24 pm
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