Budget 2018: Wagon majors Texmaco, Titagarh excited on procurement targets

Budget 2018: The leading wagon makers of West Bengal were excited after Union Finance Minister Arun Jaitley, in his budget speech today, announced procurement of 12,000 wagons in 2018-19, about 33 per cent higher than the current fiscal target.

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Budget 2018: The leading wagon makers of West Bengal were excited after Union Finance Minister Arun Jaitley, in his budget speech today. (Image: Reuters)

Budget 2018: The leading wagon makers of West Bengal were excited after Union Finance Minister Arun Jaitley, in his Budget 2018 speech today, announced procurement of 12,000 wagons in 2018-19, about 33 per cent higher than the current fiscal target. The government in the Budget 2018 said with work going on in full swing on the eastern and western dedicated freight corridors, an adequate number of rolling stock such as 12,000 wagons, 5160 coaches and 700 locomotives will be procured in 2018-19. “It is very positive for railway sector companies like us. Order targets are much better with focus on the private sector. It will have a positive impact on Texmaco Rail,” Adventz group chairman Saroj K Poddar told PTI. Leading engineering company Texmaco Rail is a part of the Adventz group that makes rail rolling stocks such as coaches and wagons.

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Another rail wagon maker Titagarh Wagons Limited from the eastern region was also excited with the higher procurement numbers. “Next fiscal’s wagon target is 12,000 against 9,000 wagons in 2017-18 which is very positive,” Titagarh Wagons Ltd executive chairman J P Chowdhary said. “It needs to be seen whether coach orders come to the private sector which has the capability,” he said.

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If order flow remains steady as announced then the ailing PSUs such as Burn Standard Company Limited will benefit a lot, industry players expected. Reacting on the sector KPMG director (infra, govt & healthcare) Rajaji Meshram said, “Union Budget 2018-19 allocates Rs 1.48 lakh crore for capital expenditure in Railways, the highest ever allocation in the history of Indian Railways.” “The focus of investment is on safety, electrification, track doubling/tripling and rolling stock such as train sets, wagons, coaches and locomotives,” he added.

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