Texmaco Rail came in second with an order for 1,338 wagons
New Delhi: After much delay and deliberation over the pricing, the Railways have finally placed the wagon orders and Titagarh group has emerged as the biggest beneficiary.
Titagarh Wagons along with its group outfit Cimmco have bagged the maximum number of 2,118 wagons. Texmaco has come second among the listed entities with 1338 wagons.
All these orders have been placed at the renegotiated price which is higher than the one quoted in the tender. Only the order issued to Amtek Railcar, which bagged just 500 wagons, was at the much lower tender price.
In terms of monetary value, Cimmco, among the listed companies on the exchanges, got the biggest order worth Rs 183.28 crore for 1,264 wagons while Hindustan Engineering and Industries Ltd, among the unlisted entities, got the biggest chunk valued at Rs 222.42 crore, for 1,557 wagons as per the order sheet issued by the Railways.
While orders have been issued for various types of wagons required by the Railways, the highest valued wagons were of type BOXNHL, capable of running at 75-kilometre per hour (kmph) in loaded and 100 kmph in an empty condition, thereby generating more throughput.
Each of these wagons has been valued at Rs 14,50,000 a piece, a price, significantly higher than the price discovered during the tendering process.
Following prolonged negotiations between the wagon makers and the Railways, the latter was forced to up the Rs 12.91 lakh price quoted by Amtek Railcar, belonging to the troubled auto component group Amket Auto, dna had reported.
That way, except Amtek Railcar, which was issued an order for 500 such wagons at its price worth just Rs 69.84 crore, all the other players have been given a price of Rs 14,50,000 a piece in an unprecedented situation.
Among the unlisted companies, Jupiter Wagon, Modern Industries, apart from Hindustan Engineering and Besco, got major junk of orders.
The current order inflow brings cheers to the wagon industry post prolonged drought in wagon order flow despite the government’s stated policy of infusion significant investment in the Railway sector.
With wagon industry desperate for any new orders trickling in, industry players started quoting ridiculously low prices even below the cost of materials, triggering a crisis in the industry.