Gallantt Ispat Ltd gets delivery of one railway rake

Gallantt Ispat Ltd had entered into an agreement with East Coast Railway, Bhubaneshwar, Odisha to buy and own Railway Wagons to get rid of wagons shortfall with Indian Railways.

Out of two railway rakes (a collection of wagons pulled by an engine) purchased by the Company in pursuance of the above agreement, one railway rake has been delivered to the Company. The railway rake so delivered is under process of working and functioning.

Th unavailability of rakes by Indian Railways is a major concern and pet peeve of the Company. Rakes are provided by the Indian Railways on priority by payment of 15% premium on freight charges and even then, availability of railway rakes is very difficult. Availability of railway rakes is more difficult through placing normal indent nowadays and recent past.

This is to reiterate that owning two railway rakes would cost the Company around Rs. 55 Crores but having own rakes would assure that raw materials are dispatched timely, hassle free and cost effectively. It is also reiterated that Indian Railways offer 10% rebate on railway freight rate for 15 years under the GPWI Scheme. As such, altogether Company would be able to save 25% on the freight cost (10% rebate plus 15% on premium indent).

Source : Equity Bulls

Keywords

GallanttIspat RailwayRake Delivery