Private wagon manufacturers like Texmaco and Titagarh will now have to undergo a thorough technical pre-qualification before they bid for wagon supply to Indian Railways. Tired of indefinite delays in wagon supplies by manufacturers, the national transporter has decided to overhaul its tendering process from this financial year by introducing eligibility tests and plant visits to ascertain bidders? capacity to deliver the number of wagons bid for.
After inspecting the factories to ascertain their technical capabilities, the railways will issue a certificate specifying the annual capacity of the unit, which will be taken into account while awarding the tender. There were no clear rules earlier to ensure timely delivery of wagons of the desired quality. Besides, contracts were awarded to the lowest bidder.
Railways member (mechanical) Sanjiv Handa had said in April that the national transporter, which is the second largest public procurer in the country, would place orders only after considering the manufacturing capacity of the bidders.
The trigger for the measure was the continuous delay in supply of wagons by the manufacturers. According to the official data, orders for as many as 12,000 wagons were pending with private firms on March 31, 2011. The delay has prevented the railways from meeting their budgetary target of wagon procurement.
Indian Railways had targeted to purchase 18,000 wagons in 2009-10 but could procure only 15,400. In 2010-11 again, it had set out to acquire 18,000 wagons, but received only 16,638 units. This year too the target is to buy 18,000 wagons.
?There have been instances where firms were giving priority to orders from the private sector and did not have the facilities to build quality wagons. There was a case where a wagon broke in two parts. This has to be checked,? a senior official in the railway ministry told FE. ?The certificate will be valid for three years and will help bidders get better orders in the next tender of 18,000 wagons that we are going to issue soon,? said another official.
A senior official from a private wagon manufacturer said, ?The certification system will only increase the railways? manipulating power.? The new system has been created after 10 months of negotiations with private companies. Under the new plan finalised by the Railways? Research, Design and Standards Organisation (RDSO), manufacturers should have an uninterrupted power supply with higher level of automation, including automatic welding units. The railways will also carry out annual audits of the factories to ensure continuous conformity to quality and quantity standards.
