Railway-linked stocks surge after Suresh Prabhu launches freight reforms

Shares of Railway-linked stocks such as Titagarh Wagon and Texmaco Rail soared up to 6% after the railway minister Suresh Prabhu presented Indian Railways Freight and Passenger Business Action Plan 2017-18, which railway officials are terming as "mini-budget".

Reacting to the development, the stock of Titagarh Wagon rallied nearly 6% to Rs 109 on the BSE, while Texmaco Rail & Engineering gained 4% to Rs 93. Stone India and  Kernex Microsystems advanced 5% each to Rs 65 and 43, respectively.

Outlining the Railways outlook for the financial year 2017-18, Prabhu said Railways will offer discounts on the long-term freight contacts, which will range between 1.5% and 35% as per incremental growth in gross freight revenues. Long-term tariff agreements will be for three-four years, he added. 

Prabhu aims to launch Bangladesh-India freight train this year, and also plans to convert 25 stations to 'digital stations'.

Soon Railways will move towards Aadhaar-based ticketing system, he added.