In a move that will end the monopoly of its public sector enterprise, the railway ministry has unveiled two big bucks schemes for wagon procurement by private companies. The ministry has now launched the wagon leasing scheme (WLS) and the liberalised wagon investment scheme (LWIS) that will permit private companies to own and lease wagons, so far the mandate of the Indian Railway Finance Corporation.
Under the WIS, high capacity wagons (HCWs) with a payload of at least 2 tonne more than the prevalent 25 tonne and 22.9 tonne axle load wagons or special purpose wagons (SPWs) for specific commodities can be owned and leased out by private companies.
Companies with a net worth of at least Rs 250 crore and with a minimum experience of 5 years will be eligible for the scheme and will have to pay a one-time registration fee of Rs 5 crore to the railways. It will be prevalent for a period for 20 years, following which it can be extended by another 10 years based on the performance of the leasing company.
The wagon leasing contracts will be a bi-partite agreement between the wagon owner and the end user. The wagon leasers will pay a maintenance fee to the railways.
Wagon leasing firms will also get freight discounts between 12 and15%. HCWs with a payload of 2 tonne or more will get a freight discount of 12% and 0.5% for every additional tonne for 20 years based on the current freight rate. Similarly SPW rakes will attract a 15% discount. The liberalised wagon investment scheme will also work on similar lines as the WIS. Private companies manufacturing commodities such as flyash, fertiliser, etc can invest in HCWs or SPWs to transport them.
However, profitable commodities such as coal, coke, ores and mineral are exempt from the scheme. The companies will procure wagons rake wise along with a few spare wagons directly from manufacturers or import them. They will then have to be certified for safety and specifications. Their wagons however will not be merged with the Indian Railway rolling stock. The LWIS scheme will enjoy the same freight discounts as the WIS.
Sources said a many private firm have already evinced interest in the WIS. Welcoming the move, Pratyush Kumar CEO and President GE Infrastructure India said, ?This is a good move by the railways which will help it reduce the capital burden and also bring in additional and modern capacity for its rolling stock.?