Steel demand for rail and railway equipment manufacturing for the state-run Indian Railways is forecast to rise by 8-9 percent during the financial year 2016-17, up from a six percent increase in the previous financial year, a senior government official said on Thursday, July 14, based on a project review of Indian Railways.
The official said that higher demand for steel for railway equipment manufacturing will stem from Indian Railways’ target of completing 800 km of new rail tracks and 15,500 railways coaches and freight wagons to be procured by Indian Railways in the current year.
Additional demand for rail is expected to be generated by Indian Railways’ target of track renewal of 2,500 km.
The uptick in domestic steel demand from Indian Railways, however, did not take into consideration incremental steel demand arising from the eastern and western freight corridors as contracts for the projects are being awarded and the bulk of steel demand will accrue in the next financial year, the official added.