Standard Post with Image

Reliance Supplying Diesel to Indian Railway, Ends Monopoly of State Run Companies

News

Reliance Industries Ltd , controlled by Mukesh Ambani, has started selling diesel to the state railways for the first time since 2005/06 after pricing of the fuel was freed, a company source said on Wednesday.

Source:  ET

SNP Insights

Diesel Supply by Reliance  to Indian Railway ends monopoly of state run companies as fuel supplier to largest diesel consumer of the country. At one end it will lay down level playing field between state & private run companies & hence competition & better service may follow, which will enhance productivity & profitability of Indian Railway & citizen of India will be the ultimate gainer. Other end Indian Railway being a major consumer of diesel, Reliance got the opportunity to tap a gigantic demand of 2.5 MTPA . Its interesting to see strategic move of both Reliance & state run companies to taper Indian Railway demand & positive implication of it on whole value chain, in due course of time

Source: SNP Infra Research