In keeping with its policy to promote private participation in container and wagon operations in the country, railway minister Lalu Prasad today announced that the Railways has prepared a new wagon leasing policy under which rail customers and container operators would be able to rent wagons.To get registered under the scheme, wagon leasing companies should have a minimum net worth of Rs 250 crore and would have to deposit Rs 5 crore as registration fee. “The registration will be valid for 20 years and will be renewable for another 10 years on rendering satisfactory services. Leasing companies have been given full rights to choose or change their lessees. These companies will lease out special purpose wagons, high capacity wagons and container wagons,” the railway minister informed in the Budget.The move has elicited cheers from logistic players, who have previously been deterred from entering the container operations space due to high capital costs involved. “This is a brilliant move on the part of the railways. It will help a number of private operators enter the business, as capital costs of investing in a rake is as high as Rs 10 crore,” said Ajay Mittal, chairman, Arshiya International, a private container train operator. “It will provide distinct advantages as logistic companies and transporters can use leased wagons for shorter periods, as per demand and supply constraints. Such rental expenditure would classify as revenue expenditure for us, which is tax deductible,” he added.Besides liberalising leasing, Lalu has also introduced a new wagon investment scheme under which investments for procurement or leasing of special purpose and high capacity wagons could be made. He said that while the wagon investment scheme announced in 2005-06 had been popular amongst iron-ore customers, the new scheme would find wider support. Freight discounts at prescribed rates would be granted for investment in special purpose wagons and high capacity wagons, he said.On the progress of the scheme, Lalu said that during the last three years, approval has been accorded for an investment of over Rs 1,500 crore for procurement of 138 rakes. Against this, 42 rakes have been received so far at a cost of Rs 500 crore. The minister also said that the 15 operators that have been given licences for running container trains in the last three years currently operate 44 trains, while Container Corporation of India (Concor) continues to be the dominant player operating 146 trains. Lalu said the number of trains by other operators is expected to increase to 50-55 by the end of this year, even as the total container traffic is expected to be 26 million tonnes in 2007-08. Eight container depots by Concor and 40 by other operators would be developed over the next few years, he informed.
