Snapshot
The procurement initiative is seen as a welcome move by the manufacturers as the wagon manufacturing units have been passing through a bad phase during the ongoing pandemic.
With the aim of bailing out the wagon industry, Indian Railways has floated a tender for procuring 8,875 wagons with both higher and lower axle load capacity at an estimated cost of Rs 2,700 crore.
The procurement initiative is seen as a welcome move by the manufacturers as the wagon manufacturing units have been passing through a bad phase during the ongoing pandemic.
While as a whole the economic parameters are on an increasing trend, the procurement plan will surely be a fillip for the industry although average procurement per year used be in the range of 13,000 wagons, according to the Railways.
However, though the present tender is the procurement for regular wagons, it has seen an amendment a few weeks ago, which is timely and praiseworthy by the Research Design and Standard Organisation (RDSO) and the Railway Board — as 25 tonne axle load B0X wagons (BOXNHL) requirement was introduced.
Industry sources pointed out that the largest quantity intended to be procured in the present tender with lower capacity of 22.9 tonne axle load.
The tender envisages 6,650 wagons out of 8,857 value — worth Rs 2,000 crore — with lower axle load capacity.
These old type wagons carry 8.72 tonnes per wagon less and in a rake of each trip, the Railways will incur a potential loss of more than 365 tonnes.
Therefore, the largest order is for the type of wagon which is currently at a sub-optimum design and not having the benefit of maximum loading.
The current wagon is suited for 22.9 tonne axle load and if the same is increased to 25 tonne axle load, there will be a direct increase of 8.72 million tonnes of load ability of this type of wagon.
These wagons are of proven design and will have a codal life of about 30 years.
However, according to the Railways, there is a concern over track limitation if wagons are converted into higher axle loads of 25 tonnes. Moreover, the initiative is to provide stimulus to the entire industry including many smaller players, the Railways maintained.
Currently, the average speed of movement of wagons on the Indian Railway network is about 45-50 kmph.
BOXNHL 25 tonne has been introduced to maximise the loading of the wagons. The higher load capacity wagons are expected to be used in the upcoming Dedicated Freight Corridor.