Kolkata-based rail wagon producers Jupiter Wagons and Hindustan Engineering & Industries and Ghaziabad?s Modern Industries are among the seven private companies in the race for supplying most of the wagons to Indian Railways this fiscal for contracts worth up to R4,000 crore.
These shortlisted companies will together produce and supply 15,715 wagons or 83% of the 18,735 wagons Indian Railways is buying this fiscal. The remaining 3,020 will be procured from public sector firms and railway factories. Of the 15,715 wagons to be sourced from private producers, 70% will be given to companies that have a good track record in timely delivery, while the remaining will go to three lowest bidders for each type of wagon in the ratio of 50:30:20, sources said.
In the bids opened on August 8, Jupiter made the lowest bids for four out of eight wagon types. Modern Industries and Hindustan Engineering & Industries were selected as the lowest bidders for two and one wagon type, respectively.
Railways is currently evaluating the bids to apportion the order based on past performance and the quoted price. ?We have to prepare a performance index for all bidders. We also have to ascertain the quality of wagon supplied earlier. We want to do it as soon as possible so that the order is awarded in time for delivery this year,? a senior official in the railway ministry told FE.
Another official of the ministry said the order could be given only by the end of September as decisions have to be taken at various levels, including the Railways Design and Standard Organisation, the Railway Board and railway minister Dinesh Trivedi.Railways received bids from 14 private wagon manufacturers, including new entrants Jindal Rail Infrastructures and BESCO (Foundry). Titagarh Wagons did not do well in the bidding as it was shortlisted as the third lowest bidder and that too for one type of wagon. Texmaco Rail & Engineering was also outbid by others.
In this year’s tender, Railways made it mandatory for bidders to comply with a new quality standard called G-105, which gives a higher weight to manufacturers’ technical expertise. While new entrants have to comply with the standard immediately, others will be given some time to do that. The tougher quality standard has been included in the tender this year to prevent delays in delivery and breaking down of wagons during operations.