Chowdhary Says India’s Railway Budget Will Spur Wagon Industry

March 14 (Bloomberg) -- Umesh Chowdhary, vice chairman and managing director, Titagarh Wagons Ltd., comments on the Indian Railways’ budget. He made the comments in an e-mailed statement in response to questions from Bloomberg News.

“One very positive aspect of this year’s budget is the announcement of the logistics corporation to use and develop railway yards as freight terminals. This would increase the private train traffic significantly and will result in a big positive for the wagon industry too.

‘‘There have been some other positive announcements including reintroduction of the wagon investment scheme and once these are implemented, this segment of our business which has been dormant for the last two years, will pick up significantly.

‘‘The budget has set a very ambitious, yet achievable target of attaining an operating ratio of 74-75 percent in two years. If the railways needs to get close to that, the only way is to increase freight loading significantly, which means a substantial increase of wagon procurement. Incidentally, the targeted annual wagon procurement stated in the vision 2020 is 29,000 wagons as against the current 16,000 to 18,000 wagons.

‘‘I believe the tall task before the rail minister will be to ensure timely implementation.’’

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