Monday 21 September, 2009

Indian Railways places order for
1,500 stainless steel wagons

It is reported that, despite the lull in the business activities owing to slowdown in the economy, the stainless steel industry is looking up, piggybacking on the increased demand from the railways.

India Railways has placed order for 1,500 stainless steel wagons and coaches besides steel peripherals, which can be extensively used inside the compartments. Talks are also under way with major manufacturers to place orders for stainless steel fixtures at the railway stations. The railway ministry had in its last budget, announced the plan to create word class facilities at the major railway stations.

Mr Hitendra Bhalaria co chairman of Indian Stainless Development Organization said that however, the major order from the railways will be for railway tracks. The railways has a long term plan to replace all its existing lines with the rust free stainless steel ones, there by saving crores of rupees which may otherwise go into replacing the tracks in regular intervals. In the first phase, railways has decided to replace 500 kilometers of its track with stainless steel and order for the same is been given to leading manufacturers.

He added that "After the utensils sector, the railways’ orders are boosting our production and with more metro railways being constructed in Hyderabad, Chennai and Kochi, the stainless steel industry is going to get a major leg up."

India is approximately producing 2.5 million tonne of stainless steel of which 70% is being used in utensil sector. The construction industry is the major customer of the sector, with high rise buildings and towers increasingly opting for stainless steel. The transport sector, which off late has taken to using stainless steel parts, contributes to the order book of the major companies.a

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