The Hindu Business Line : Rlys earns Rs 1,840 cr through scrap sale

New Delhi, Feb. 14 Indian Railways is generating more scrap. For the first three quarters of the current fiscal, Railways has earned Rs 1,840 crore through sale of scrap, which is higher than the total scrap sale revenue (Rs 1,834 crore) of 2006-07 full year.

Scrap items comprise worn-out rails, unserviceable items, condemned machinery and plant, rolling stock (wagons, coaches and locomotives).

With this, Railways is well on track to attain, if not surpass, the targeted Rs 2,000-crore revenue from sale of thousands of tonnes of scrap – a revenue generator that is probably not accorded its due credit in the rail budget. The revenue goes straight to the cash surplus.

Public auction

This year, as part of disposing of the over-aged assets Railways plans to scrap 17,400 four-wheeler wagons. This includes almost 3,400 wagons with vacuum brakes, which would be sold off.

Usually, 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.

In 2006-07, Railways had earned Rs 1,834 crore through scrap sale against a target of Rs 1,700 crore. During the last few years, Railways standardised collection methods, started verifying quantities by Railways and vigilance officials after rails are collected, and faster lifting of rails.

It has also adopted e-auction as a pilot project in Southern Railway to bring in more transparency to the process.

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Rlys earns Rs 1,840 cr through scrap sale