Money Control
The introduction of new passenger coaches and wagons enhanced the demand for the rolling stock. However, the second largest steelmaking nation in the world with a long history in forging, did not create domestic capacity. Wheels and axles are imported from China, Malaysia, Europe and the US to meet the demand-supply gap
Unprecedented infrastructure push by the Narendra Modi government created ground for rapid growth in domestic manufacturing. The industry has yielded part of the benefits as is visible in the rush of orders to engineering companies. However, a lot of domestic value addition opportunity is also wasted as is evident in the rising import of railway wheels, ignoring repeated promises to translate demand into an opportunity to Make-in-India. The blame should go squarely on the lack of planning and delay in structural reforms. The Research Designs & Standards Organisation (RDSO) which approves railway procurement, creates more hurdles for vendors than ensuring quick supplies.
