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NEWS NOTES
On Wagon Industry

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usm-red.gif (836 bytes)On wagon industry
M
isdeeds and misleads by the railway minister.
usm-red.gif (836 bytes)Basu
I
ndustry taking a new turn.

From Aroop Sen

What railway minister is saying about the wagon orders to the wagon industry it seems even the nodal ministry, the heavy industries ministry is also not aware.

It may be pointed out that in note distributed to the newsmen from her office in Rail Bhavan after the press conference by Mamata Banerjee on 25th February, '' Railway Budget 2000-2001, Mamata Banerjee's Millennium Gift to the people West Bengal'.

In para 28, it is stated that " A major support by way of increased wagon orders is being provided to the wagon industry, which is mainly located in west Bengal. Against net order of about 10,000 four wheeler units (FWUs) in the current year, next years wagon requirements are assessed at 23,000 FWUs. This will go a long way in injecting new life in the wagon manufacturing units, including public sector ailing units, in West Bengal. Approximate fund flow to wagon industry in West Bengal will be Rs.1020 crore in the next financial year'. This was carried by the papers with big headlines.

But then let us see what the nodal ministry has to say even after three days.

Today in reply to a question in Rajya Sabha by CPI(M) MPs on Dipankar Mukherjee and Khagen Das on placing of wagon order with sick PSU’s what the minister of heavy industries and public enterprises have to state is itself sufficient to now the reality.

In reply to a question as to whether government's attention has been drawn to the news-item, "Joshi requests Mamata to place sixty per cent of wagon order eight sick PSU’s which appeared in a Financial Express dated 20,1,2000 and if so the response of the railway ministry to the request. Manohar JOshi said yes, the ministry forwarded a proposal on 17th November 1999 to the ministry of railways for grant of 60 percent of wagon orders or a minimum 11000 four wheeler units (FWUs), whichever is more, on the wagon manufacturing public sector undertakings of the ministry of Heavy Industries and Public enterprises. He further added that the response of the ministry of railways on the proposal is still awaited. This is minding it today, where as she has claimed it that already been done.

Secondly, they asked the minister what is the minimum number of wagons required to be ordered on Braithwaite , Burn Standard and jessop units ot sustain the revial of these units. The minister in his written reply stated "" as per BIFR revival schemes , the minimum number of wagon orders required by Braiathwaite , Burn Standard and Jessopt during 2000-2001 are 8937.5 are FWUs. It may be not out of the place to mention that the all the trade unions of the wagon industry and officer assoctions had demanded that at least order should be placed for 10,000 wFWUs wagon for proper capacity utilisaiton in the three psus wagon units.

The members of parliament also wanted to the impact of the pricing as per the lowers tender on these PSUs Manohar Joshi said that ," the reduction in gross Margin due to reduction in tneder wagon prices 2000-2001 compared to the budget estimates 200i-2001 perforame tragts will be of the order of Rs.15.68 crores in repect of BSCL<BWT and Jessop."

Asked the action plan of government to resolve the issue in consulation with the railways the minister said that >"this ministry is continioulsy taking up this with thr railways".

But than what railway minister has stated and what the newspaper had prinited is not what the real situation is according to heavy industries and public entreprises.





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