Rail Budget for aluminium body wagons

The railway Budget has proposed to introduce aluminium body wagons on a trial basis because of corrosion in conventional wagons.

Shares of Indian aluminium makers spurted up earlier today afternoon after the railway Budget for fiscal year 2004 - 2005 proposed to introduce aluminium wagons on a trial basis.

Hindalco Industries scrip rose as much as 3.5% to Rs 1,068, while that of state-run National Aluminium Company, climbed as much as 3.3% to Rs 135.75.

Released earlier today, the Budget document said, "Corrosion in conventional wagons affects their availability and productivity and reduces their life. In order to overcome this problem, field trials of stainless wagons are in progress. In addition, it has been proposed to introduce aluminium body wagons and conduct field trials ".

Analysts expect higher demand for aluminium as a result of the railway Budget proposal.