Railways’ rolling stock purchase plan to boost wagon makers

Railways minister Dinesh Trivedi shocked the wagon makers this time by skipping in his Budget speech the usual wagon-buying target for the coming year, resulting in a severe drubbing of the Railway dependent firms on the stock market.

Wagon makers such as Texmaco Rail and Engineering and Titagarh Wagons, however, expect the Railways ministry to announce wagon procurement for 2012-13, which could be close to last year’s figure of 18,000.

“Though we were surprised by the absence of any announcement on wagon procurement, we think the Railways will come out with an announcement soon and it would match last year’s level,” Titagarh Wagons chairman J P Chowdhury told DNA.

Every year on the railway Budget day, promoters of wagon makers such as Texmaco and Titagarh stay glued to the TV set eagerly waiting for the most important announcement of the day: procurement of wagons.

The reason for omitting wagon firms could be reworking of the target number by the ministry due to severe fund crunch, according to some officials of these companies. On a positive note, the wagon and railway component makers would benefit from higher outlay on rolling stock procurement and thrust on research & development, Chowdhury said.

“The Budget has focused on accelerated development of double-deck container flat wagons, autocars, and new Design 25T Axle load freight cars. The budgeted expenditure for procurement of rolling stock, about 32% higher at Rs18,193 crore as against Rs13,824 crore last year, makes a significant increase and augurs well. The revival of the procurement plan for high power electric and diesel locomotives needs to be on fast track to make up for the lost time,” Texmaco chief finance officer A K Vijay said.

The Railways proposes to fit 2,500 coaches with eco-friendly toilets next year. “The DRDO (Defence Research and Development Organisation) developed bio-toilets are currently under extended trial to test their efficacy and suitability,” Trivedi said in his budget.

However, Stone India, a GP Goenka-group company, which got a patent for a green toilet isn’t going to benefit as the ministry plans to do it all by itself, an official of the company said.
“While Railways earlier fitted three of its trains with bio-toilets made by us, they stopped taking further supplies. They are developing the integrated toilet systems on their own,” the official said.