DELHI (Metro Rail News): Shares of railway wagon companies saw a sharp rise on May 25 after reports said Indian Railways is preparing a huge Rs 40,000 crore tender to buy around 1 lakh freight wagons over the next few years. The expected order pushed railway manufacturing stocks higher as investors looked at strong future business opportunities for the sector.
Shares of Wagon Companies rise
After the reports came out, shares of major railway companies moved up during trading:
- Jupiter Wagons jumped nearly 10% to around ₹304
- Titagarh Rail Systems rose around 8-9% to about ₹823
- Texmaco Rail & Engineering gained more than 6%
The rally came after reports suggested Indian Railways may soon launch one of its biggest freight wagon procurement plans. According to reports, Indian Railways plans to buy nearly 1 lakh freight wagons over the next three to four years.
Key Details
- Total tender value: Around ₹40,000 crore
- Total wagons planned: 1 lakh
- Annual target: 35,000 to 40,000 wagons
- First set of orders likely between July and September this year
Reports also said Railways has started discussions with manufacturers to check their production capacity before issuing the tender.
Industry expects fresh business boost
Most wagon makers are currently finishing orders from the previous large Railway tender issued in 2022. Companies now expect fresh long-term orders to keep factories running at full capacity.
Speaking to Mint, Texmaco Rail & Engineering Managing Director Sudipta Mukherjee said the company supplied nearly one-third of the annual wagon requirement under the earlier Railway order. He added that Texmaco can manufacture more than 15,000 wagons every year.
Why Freight Wagons matter
Indian Railways uses freight wagons to transport goods across the country. These wagons carry coal, cement, steel, food grains, and Industrial products. More wagons can improve freight movement and help Railways handle rising cargo demand more efficiently.
Indian Railways is expected to complete discussions with manufacturers before releasing the tender in phases. If the plan moves ahead on schedule, it could give a major boost to India’s railway manufacturing industry over the next few years.
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