By Anuradha Himatsingka,ET Bureau
KOLKATA: Indian Railways plans to introduce new wagons that are cheaper by a fifth and carry almost the same weight as the existing stainless steel ones.
However, the railways will seek inputs from all stakeholders before taking a final decision on the use of 'high alloy mild steel' for manufacture of covered wagons, a railways official said.
This steel is expected to lower the production cost by about Rs 6-7 lakh per wagon, which costs around Rs 35 lakh. A wagon built using mild steel willl be able to carry the same weight as that by a stainless steel one, which is approximately 70.8 tonne.
The official said, "When we decided to go for stainless steel wagons some two years ago, the pay-to-tare-ratio' (the load factor) improved. But the procurement cost per wagon nearly doubled and adversely impacted Indian Railways' (IR) margins."
The Railways had released orders for procuring 18,000 wagons for the financial year 2010-11.
A senior industry player said, "The difference in procurement cost is substantial and will have a positive impact on IR's profits."
Half the wagons produced in the country are covered. Uncovered wagons, or open wagons, are prone to corrosion and so have a lower life span. "It is, therefore, prudent to use stainless steel for uncovered wagons. For covered wagons, we have been trying to find out ways to lower manufacturing costs. We finally zeroed in on high alloy mild steel," the source said. Steel producers have more or less agreed to supply this steel to wagon manufacturers. (via ET )
However, the railways will seek inputs from all stakeholders before taking a final decision on the use of 'high alloy mild steel' for manufacture of covered wagons, a railways official said.
This steel is expected to lower the production cost by about Rs 6-7 lakh per wagon, which costs around Rs 35 lakh. A wagon built using mild steel willl be able to carry the same weight as that by a stainless steel one, which is approximately 70.8 tonne.
The official said, "When we decided to go for stainless steel wagons some two years ago, the pay-to-tare-ratio' (the load factor) improved. But the procurement cost per wagon nearly doubled and adversely impacted Indian Railways' (IR) margins."
The Railways had released orders for procuring 18,000 wagons for the financial year 2010-11.
A senior industry player said, "The difference in procurement cost is substantial and will have a positive impact on IR's profits."
Half the wagons produced in the country are covered. Uncovered wagons, or open wagons, are prone to corrosion and so have a lower life span. "It is, therefore, prudent to use stainless steel for uncovered wagons. For covered wagons, we have been trying to find out ways to lower manufacturing costs. We finally zeroed in on high alloy mild steel," the source said. Steel producers have more or less agreed to supply this steel to wagon manufacturers. (via ET )
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