To tide over the rakes shortage, Gallantt Ispat entered into an agreement with East Coast Railway to buy railway wagons as it will save both time and cost for the company. Procurement of rakes is more difficult by placing normal indent. Hence, the company is in the process of acquiring two railway rakes under the General-Purpose Wagon lnvestment Scheme (GPWIS) of Railway Board. Thus, lndian Railways offer l0 per cent rebate on railway freight rate for 15 years under the GPWI Scheme. As such, altogether company would be able to save 25 per cent on the freight cost (10 per cent rebate plus 15 per cent on premium indent).
Owning two railway rakes would cost the company around Rs 55 crore but having own rakes would assure that raw materials are dispatched timely, hassle free and cost effectively.
First rake is expected to be delivered in the last week of July and the second one in the month of November.
“If everything goes as per the expectation of the management, company would explore of owning more railway rakes in future to cater the need of raw materials of the Company with faster movement, Gallantt Ispat said.
