Indian Railways finalizes 1000 Cr wagon order

The Indian Railways has finalized its wagon order for sourcing about 17,500 to 18,000 wagons. Railway Ministry officials said that the total order value will be over INR 1,000 crore, though official sources were unwilling to comment.

The order is important for wagon manufacturers as the Indian Railways had not been able to place major part of the wagon procurement for 2009-10 fiscal till date. The price bids for the wagon had been called earlier this year.

The order will accrue to companies including Texmaco, Titagarh Wagons, Hindusthan Engineering and Industries, Cimmco Ltd, Modern Industries. But, the Ministry officials declined to share the exact break up of the order.

A ministry source said that “The decision was taken on Wednesday evening.”

The Railways proposes to procure another 18,000 odd wagons in 2010-11 fiscal. The bidding process for the current fiscal has not yet been initiated.

The cost for each wagon will depend on the kind of wagon to be procured. An industry source indicated that the cost per wagon will be roughly INR 2.5 million for the Railways.

The industry source that from a wagon manufacturer’s perspective each wagon order should be around INR 1.7 million or so since there are free supply items as well.

Free supply items are those components required in wagon manufacturing that are procured by the Indian Railways and supplied to wagon manufacturers. The free supply items include steel sheets, wheels and ball bearings.

(Sourced from BL)

Published in: on September 18, 2010 at 1:20 pm  Leave a Comment  

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