Railway’s Wagon Order Release

The buzz is that the government will release rail wagon orders this month. In FY10, 18,000 wagons were meant to be procured and the same amount is supposed to be procured in FY11.

However, no orders have been released in FY10. Had both years’ orders been released, it would have meant an order-flow of Rs45 billion for the industry. The whole problem apparently started with four key wagon-makers writing to the railways, saying that no orders should be placed with the Rajasthan-based Cimmco Birla Ltd, revived recently under a Board for Industrial & Financial Reconstruction (BIFR) scheme. The letter raised legal issues about the tender criteria and ministry officials got involved. Orders from the railways came to a grinding halt.

Watch companies like Texmaco, Titagarh Wagons

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