Signifying a greater degree of privatisation and openness in railways operations, Railway Budget 2008-09 is likely to bring in major changes in the ownership and investment of wagons. The ministry plans to expand the scope of the Wagon Investment Scheme to allow private players to own and design specialised wagons.
According to the proposal, private companies would be allowed to design customised wagons for commodities as per their needs. The objective would be to increase the carrying capacity of wagons while sticking to the prescribed axle load. The designer will then have to get approval from the Research, Design and Standards Organisation (RDSO) for safety standards. This year?s Rail Budget had allowed private players to design their own wagons, but it was restricted to only six types of wagons. Following this, customised wagons for transporting items, including milk and automobiles, were introduced by private companies.
Along with this, the revised scheme will also permit the entry of private leasing firms to help finance and lease out wagons to interested players. At present, only the Indian Railway Finance Corp, an arm of the railways, can lease out wagons. New entrants will be allowed to invest in the special wagons, to be designed by private companies.
An announcement to this effect is likely to be made in the Rail Budget. Commenting on the move, a Rail Bhawan official said, ?The main reason behind the revised policy is that we want to reduce clogging of railway tracks. If a wagon can transport more freight, it will help in this.?
The move will also be in tandem with the railway ministry’s decision to allow greater public private cooperation and will also generate more interest in the Wagon Investment Scheme, which was originally announced two years ago.