Gallantt Ispat Ltd receives delivery of second railway rake

GALLANTT ISPAT LIMITED had entered into an agreement with East Coast Railway, Bhubaneshwar, Odisha under the GPWIS Scheme 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 in the month of August,2023 and is now functional.

The second railway rake, which is ready to operate, has been delivered to the Company/Railways for the purpose of loading of raw materials required for its manufacturing units such as coal, iron ore, fines, etc.

This is to further reiterate that owning two railway rakes had cost the Company Rs. 55 crores (approx) but having own rakes would assure that raw materials are dispatched timely, hassle free and cost effectively. As intimated in our earlier announcements, under the GPWIS Scheme lndian Railways offer 10% rebate on railway freight rate for 15 years and as such, Company altogether would be able to save 25% on the freight cost (10% rebate plus 15% on premium indent).

Source : Equity Bulls

Keywords

GallanttIspat Agreement EastCoastRailway Odisha IndianRailways