BL reported that, in order to increase its load carrying capacity and fuel efficiency, Indian Railways have awarded contracts to 2 private wagon manufacturers namely BESCO Limited and Texmaco Limited for manufacture and supply of 300 aluminum wagons. The value of the contract is estimated to be INR 50 crore.

Mr RK Rao member mechanical of railway board said that "We have placed order for supply of 300 aluminum wagons on an experimental basis with 2 private wagon manufacturers. If the trial runs succeed, the railways will shift to aluminum wagons as these offers various advantages over steel and stainless steel wagons that are in use."

Meanwhile, with the railways deciding to shift to aluminum wagons, private wagon manufacturers are ramping up their operations. Recently, Kolkata based Titagarh Wagons Limited received nod from the Foreign Investment Promotion Board for setting up a JV with Chicago based Freight Car America to test market and manufacture aluminum rail cars at an estimated cost of INR 120 crore.