EXPORT OF ROLLING STOCK

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Indian Railways have exported rolling stock comprising locomotives, wagons and passenger coaches worth Rs. 34 crores in 2002-2003 as against Rs. 34.44 crores of export of such rolling stock during 2001-2002.

The exports of rolling stock are executed by Rail India Technical and Economic Services Ltd. (RITES) and Indian Railway Construction Company International Ltd. (IRCON International Ltd.), the two public sector units of the Ministry of Railways. In some cases, however, relaxation is given to the General Managers of the Production Units to quote directly against export enquiries whenever the customer approaches them directly.

The Ministry of Railways has identified export of rolling stock as one of the thrust areas.

RITES and IRCON have been directed to make aggressive marketing efforts for sale and lease of both new and old rolling stock. Both have been allocated specific countries to avoid duplication of efforts. Stiff competition in the international market is, however, being faced from China and South Korea.

The Ministry has taken several measures to compete in the global market. These include flexible marginal costing approach to various global market forces and availability of surplus capacity. Besides, the price of the product is arrived at by taking into account 5 per cent overhead charges, nominal three per cent profit and two per cent proforma charges in order to make the product globally competitive.