Wagon-makers have cheered the this year's railway budget, saying the proposals bring back hope of higher capacity utilisation.
"The provision for procurement of 16,800 wagons in 2015-16 would bring cheer to the wagon industry, which has been starved of adequate orders," Texmaco Rail & Engineering Ltd Executive Vice-Chairman Ramesh Maheshwari said.
"The proposed incentivisation of the various schemes for adding to the fleet on rail network through wagon leasing, liberalized wagon investment scheme and special freight train operator scheme providing for commodity-specific new design wagons should help ease the railway finances, while adding to the freight carrying capacity," he said.
The wagon-makers had expressed disappointment over lower orders in the past two years.
Titagarh Wagons Chairman J P Chowdhury said there has been a huge jump in requirement of wagons and coaches which is good for the sector.
"The industry capacity is 30,000 wagons and at least now we can expect 50 per cent capcity utilisation by the industry against doldrum situation for the past two years," he said.
Chowdhury said with a boost for private sector participation, the company is ready to take off.
