SAIL-RITES JV Secures Rs. 818 Crore Wagon Order from Indian Railways

Indian Railways has awarded a significant wagon manufacturing contract worth Rs 817.74 crore to a joint venture between SAIL and RITES. The contract, involving the production of 2,000 Bogie Open Wagons (BOXNHL), will be used for transporting coal and iron ore. According to insiders, the contract was awarded in the final week of April to SAIL-RITES Bengal Wagon Industry Private Ltd (SRBWIPL), marking the first wagon procurement tender of the 2024-25 financial year.

These wagons are crucial for Indian Railways' freight operations, allowing for efficient transport of bulk commodities. The new contract is part of Indian Railways' ongoing efforts to modernize and expand its rolling stock to meet growing demand and improve operational efficiency.

In March 2024, Indian Railways awarded contracts to several other companies for the supply of various types of wagons. Kolkata-based Besco, Hindustan Engineering and Industries (HEI), Jupiter Wagons, and Titagarh Rail Systems secured tenders to supply Bogie Open Wagons (BOSM). HEI received a significant order for 4,500 wagons valued at Rs 1,924.88 crore, while Titagarh Rail Systems was awarded a contract for 4,463 wagons worth Rs 1,909.05 crore.

The interim budget for 2024-25 has allocated Rs 41,086.09 crore for purchasing rolling stock, including engines, wagons, and coaches, reflecting Indian Railways' commitment to enhancing its infrastructure. This represents an increase from the revised estimates for 2023-24, which allocated Rs 40,395.87 crore for rolling stock. Overall capital expenditure for Indian Railways in the 2024-25 fiscal year is budgeted at Rs 2.52 lakh crore, up from Rs 2.40 lakh crore in 2023-24.

The awarding of this contract to SAIL-RITES underscores Indian Railways' focus on expanding its freight capabilities and supporting industrial growth by ensuring a steady supply of key commodities like coal and iron ore.

ET