Economy, Business And Markets

Gov’t Allocates $2b to Import Subway Cars

Gov’t Allocates $2b to Import Subway CarsGov’t Allocates $2b to Import Subway Cars

The government has allocated $2 billion to import 2,000 subway cars, the deputy interior minister for construction, urban and rural development said. “The move is in line with a bill passed by the parliament,” Houshang Khandan added, noting that the wagons will be imported in the second half of the upcoming fiscal year (to start March 20, 2017), IRNA reported. The government has put development of public transport on top of its agenda amid overcrowded urban areas and sprawling metropolises with snarling traffic and worsening pollution. On Monday, the parliament approved a bill that requires the government to increase the share of domestic companies in the manufacture of equipment used in rail projects, including wagons, to at least 85% by the end of the sixth five-year development plan (2016-21).  According to the new law, the government should “organize the foreign purchase of equipment in a way that exploitation of domestic capacity in manufacturing and services is maximized” and “technology is transferred into the country”. Domestic companies have been lately signing joint venture agreements with international firms to start manufacturing train wagons inside Iran and reduce reliance on imports.

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