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The wagon industry, starving of adequate orders from the railways, welcomed the long-term course correction of the Railways and looked forward to improved procurement.
The Rail Budget augurs well across for the business and industry associated with the Railways, said Ramesh Maheshwari, Executive Vice-Chairman of Texmaco Rail.
“The plan charted out will give a huge fillip to the Railways, and the massive flow of investment in railway infrastructure and rolling stock will bring about major revival of the industry. The wagon industry, which has been in doldrums lately, would pick up momentum and regain its health through larger flow of orders with expansion of Rail network”, Maheshwari added.
Umesh Chowdhary, Vice-Chairman and MD of Titagarh Wagons Ltd felt that the new Minister delivered the maximum that could have been practically expected. “It surely provided a directional framework and commitment”.
Motilal Oswal, CMD, Motilal Oswal Financial Services, said the Rail Budget enhanced the scope for private participation through wagon leasing. “Long term vision was spelt out in terms of initiation of Diamond Quadrilateral project, identified high speed rail corridors and push towards other strategic rail corridors”, Oswal added.
According to industry sources, the business-like budget exercise has set in motion for better resource mobilisation plan and aim to set the Railways in order. Additional revenue mobilisation through improving finance of Rail PSUs, encouraging private investment and FDI and through PPP mode would eventually improve the balance sheet of the Railways, industry insiders said.
Reacting to the indication of a reduction in the borrowing through IRFC, which would result in lesser investment in the rolling stock assets, Chowdhary said in an industry, where variable costs was as low as 30 per cent, it might have been an option to consider higher investment in the rolling stock to increase the gross revenue of the railways. The marginal contribution to every additional rupee of revenue generated was almost 70 per cent, he pointed out.
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