MARCH 20268CABINET CLEARS RS 9,072 CRORE RAIL EXPANSION PROJECTSESCORTS KUBOTA TO STRENGTHEN MARKET POSITION WITH PLANT EXPANSIONThe Cabinet Committee on Economic Affairs has approved three major railway expansion works worth about Rs. 9,072 crore, giving a strong push to capacity building across key routes.The decision covers the Gondia­Jabalpur Doubling project, the Punarakh­Kiul 3rd and 4th line, and the Gamharia­Chandil 3rd and 4th line. With this move, the Escorts Kubota, the merged entity of India's Escorts and Japan's Kubota Corp, is facing challenges in gaining market share within the highly competitive Indian tractor market, five years after the merger.Despite efforts, the company has consistently lagged behind the industry's growth. For FY26, Escorts Kubota's market share dropped to 10.8 percent from 12.9 percent in Cabinet Committee on Economic Affairs has set the stage for faster and more reliable rail operations across four states.The three projects will span eight districts in Maharashtra, Madhya Pradesh, Bihar, and Jharkhand. Together, they will add nearly 307 kilometers to the existing Indian Railways network. The multi-tracking works are expected to improve connectivity to around 5,407 villages, benefiting a population of nearly 98 lakh people.Officials said the added line capacity will ease congestion on busy corridors. This will improve train movement, increase operational efficiency, and enhance service reliability. Both passenger and freight trains are expected to see smoother operations once the projects are completed.The projects have been planned under the PM-Gati Shakti National Master Plan. The focus remains on integrated planning, stronger multi-modal connectivity, and better logistics efficiency through close coordination among stakeholders.With these approvals, Indian Railways aims to streamline operations and support economic growth by ensuring seamless movement of people, goods, and services across key industrial and rural regions. FY22, with a growth rate of 11 percent in domestic tractor sales, significantly lower than the industry's 20 percent rise.However, the company saw a surge in exports, which grew by 54 percent, outpacing the industry's 8.7 percent increase. Both Nikhil Nanda, Chairman and Managing Director, and Deputy MD Akira Kato acknowledge that the turnaround has taken longer than anticipated."We needed time to align the strengths of both sides--the agility, flexibility, and low cost of India, and the strengths of Japan--to create something new together," said Kato.The launch of the Promaxx tractor under the Farmtrac brand has shown promising results, with demand exceeding projections in its initial rollout across four states.However, the company's market struggles stem from product limitations and geographical gaps. The Kubota brand's limited lineup, reliance on imports, and cost disadvantages have led to a product offering that only addresses 40-50 percent of the market."The issue is on the product side--the product lineup is not strong," the company admitted. To address these challenges, Escorts Kubota plans to launch new models this fiscal year and build a fully localized platform under Kubota to better cater to the diverse Indian market. TOP STORIESTOP STORIESTOP STORIES
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