Rail wagon scheme may be extended

The railway ministry is planning to expand the scope of the Wagon Investment Scheme (WIS) announced in Budget 2005-06 to all types of wagons and private trading houses.

At present, the scheme is applicable to only two types of wagons, which is used for general cargo and covers only siding (off-shoot lines going up to the customer's doorstep) owners, producers and public sector companies.

Players willing to invest in wagons are given a guaranteed supply of rakes in addition to the usual quota. There is also a 10 per cent rebate for a specified period on the guaranteed rakes.

"Various players in the industry, including private trading houses, sought that the wagon-investment scheme be expanded," a railway ministry official said.

The industry, he said, was particularly interested including container flats and bottom-discharge wagons in the investment scheme. Companies like Sail and Tata have shown interest in such kind of wagons.

The ministry, however, does not intend to promise a guaranteed supply of additional rakes to the new investors. Only the relief in terms of discount on freight rates will be extended to those interested in investing in wagons.

A guaranteed additional supply was not possible in case of wagons carrying specialised cargo as they operated in closed circuits, the official explained.

This reduces the availability, as the wagons end up being booked for the to-and-fro journey. Spare rakes are available only if the circuit is completed.

The officials added that in the first month of the current year itself, the scheme had attracted commitment for more than Rs 128 crore investment in wagons.

Railways had already given permission to three companies, including Gimpex, iron ore mining and exporting companies-- MSPL and MSPL Exports-- that had offered to invest in six rakes.

Another company Sesa Goa had applied for four rakes, he said adding that the state owned trading house-MMTC Ltd-- had also shown interest. One rake would require investment in 61 wagons.