- 31 Oct 2022
- ICICIdirect Research
GOVERNMENT TO ROLL OUT PROJECTS WORTH RS 90,000 CRORE SOON TO REMOVE BOTTLENECKS IN FREIGHT MOVEMENT
News:
The Railway Minister has said the government will roll out projects worth Rs 90,000 crore in the coming months to remove bottlenecks in the movement of freight. He said, these projects will be sanctioned in the coming months and will help Railways to move towards achieving the freight loading goal of 3,000 million tonnes (40% of total country’s freight) by 2027 (from 1418 million tonnes in FY22)
View:
This is significantly positive for the overall railways sector and companies present in the sector. The goal of increasing share of railway freight will directly induce demand for locomotives, wagons and key components required for manufacturing freight trains. This is significantly positive for locomotives manufacturers like Bhel, Siemens and railway wagon manufacturers like Titagarh Wagon, Texmaco Rail, BEML. Moreover, companies like HBL Power systems and Kernex Microsystems, which will be manufacturing Kavach (TCAS Train Collision Avoidance System), are also expected to benefit
Impact:
Positive