Steel prices in India cause concern for Railways

Steel prices in India cause concern for Railways

According to recent news in the market, rising steel prices will increase expenses of Indian Railways by Rupees 4 billion ($91.5 million) in 2004-2005 fiscal year. The Railways is the largest consumer of steel in the country with an annual consumption of 1.4 million tons of steel. It is stated that steel prices have increased by 26% in the current fiscal year. Due to the rising steel prices, Indian Railways is working on a project to substitute steel usage in wagon production. Moreover, Railways has decided to produce aluminum wagons.