The Hindu Business Line : Scrap disposal helps Rlys mop up Rs 2,355 cr in 11 months

New Delhi, March 14 A combination of better process adoption, more scrap volumes and higher metal prices has helped the Indian Railways mop up Rs 2,355 crore through the sale of scrap material in the first eleven months of the current fiscal.

This is 28 per cent higher than the total scrap sale revenue (Rs 1,834 crore) of 2006-07. Scrap items comprise worn-out rails, unserviceable items, condemned machinery and plant, rolling stock (wagons, coaches and locomotives). In the current fiscal, Railways had a target of generating Rs 2,000-crore earnings from sale of scrap.

As part of disposing of the over-aged assets, the Railways aims to scrap 17,400 four-wheeler wagons in the current fiscal. This includes almost 3,400 wagons with vacuum brakes, which would be sold off.

Usually, the Railways sells thousands of tonnes of scrap — over 12,000-16,000 wagons, 1,200-1,300 coaches, 50-100 locomotives — every year through tenders or public auction.

The increase is on account of rise in quantity of scrap being sold as well as firming up of metal prices. During the last few years, the Railways standardised collection methods and introduced multiple verification processes to avoid leakages. “We have started verifying quantities of scrap by Railways and vigilance officials after rails are collected. We also ensure faster lifting of rails,” said officials in the know.

In order to keep out the mafia and bring in more transparency into the process, the Railways also adopted e-auction as a pilot project in Southern Railway.

Past figures

In 2006-07, the Railways had earned Rs 1,834 crore through scrap sale, while in 2005-06 the amount was Rs 1,365 crore. A year prior to that, Indian Railways had earned Rs 1,032 crore from scrap sale.

More Stories on : Railways

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
The making of country’s first private greenfield airport

Domestic airlines worry over operations at new airport

New Hyderabad airport commercial operations delayed

Paramount hopeful of pan-India presence in two years

Mobile phone to replace airline boarding pass soon

‘Foreign operators to dominate containerised sea-borne trade’

Shipping cos told to put in place policy against sexual harassment

Scrap disposal helps Rlys mop up Rs 2,355 cr in 11 months

RITES, Ircon to get relief on Iraq projects