Wagon companies tank on lack of clarity on rail projects

Shares of private sector wagon makers Titagarh Wagons, Texmaco and Kalindee Rail plunged 4-8% as the Railway Budget for 2011-12 did not provide much clarity on implementation of the proposed rail projects.                                           

In her third annual budget in parliament on Friday, railways minister Mamata Banerjee proposed to set up two wagon units with the assistance of private partners.     

"The rail minister has announced setting up of rail wagon units. So the share of private sector allocation for wagon orders will be reducing," said an analyst with a local brokerage house.                                           

"Wagon procurement target for the year was not given, no numbers were shared. There is also lack of clarity on the implementation of the projects that have been announced," said the analyst who preferred not to be named.