The public sector wagon manufacturers have sought a separate plan fund allocation in the Railway Budget for technological upgradation of the wagon industry to meet the railway design stipulations laid down by the Research, Designs and Standards Organisation (RDSO).
Wagon manufacturers are currently reeling under a cash crunch owing to poor procurement by the railways. The railway board has cut down wag on acquisition to 81,000 FWUs in the plan period and procured about 18,000 FWUs per annum, contrary to plan panel recommendations.
The railway ministry adopted an ad hoc wagon procurement policy that affected wagon and allied industries, sources said.
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The wagon industrys capacity of over 30,000 FWUs remained vastly unutilised in 1994 as the board released orders for only 9,400 four-wheeler units.