Titagarh Rail Systems has announced the receipt of a revised order from the Indian Railways, now valued at ₹7,100 crore.

What Happened: Titagarh Rail Systems sought permission from the Indian Railways to short-close 3,089 BCNA wagons — a BCNA wagon is a covered wagon used for transporting goods — from the total ordered quantity of 24,177 wagons. Short closing or foreclosing of a contract means ending the contract early due to different reasons with mutual agreement.

This request was granted, and an additional order of 716 BOXNHL wagons — BOXNHL wagons are open gondola-style freight wagons used to transport bulk commodities like coal — was placed by the Indian Railways. Consequently, the total revised order quantity is now 21,804 wagons worth around ₹7,100 crore.

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The company stated that this decision was made in the company’s overall interest to balance the available capacity with workloads, including the execution of private wagon orders, and to avoid incurring liquidated damages on the said quantity.

In a separate development, the company also received a favourable award against an earlier wagon contract dated 30.09.2020. A quantity of 390 BCNA wagons valued at ₹33.19 Lakhs, which was short-closed by the Indian Railways, has been reinstated in favour of the company. The delivery of these wagons is to be made within six months from the award date.

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