RITES to prepare detailed project report on corporatisation of Indian Railways production units; details here

By: |
December 02, 2020 4:44 PM

The unions of Indian Railways have opposed the decision of the national transporter to turn its production units into corporate entities, raising concerns about job losses.

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A detailed project report will be prepared by RITES on the proposed corporatization of Indian Railways’ production units, which will be discussed with the unions in the period of April-June next year. The unions of Indian Railways have opposed the decision of the national transporter to turn its production units into corporate entities, raising concerns about job losses, according to a PTI report. Recently, Railway Board Chairman and CEO VK Yadav said once the DPR by the Rail PSU is ready, the national transporter will discuss it with unions and see how it can be taken forward along with ensuring that interests of Indian Railways’ staff are adequately taken care off.

According to Yadav, the consultation period will be of two-three months between April-June next year. Piyush Goyal-led Indian Railways plans to corporatize the production units which it has claimed will lead to greater efficiency. These production units include the Integral Coach Factory, Chittaranjan Locomotive Works, Diesel Locomotive Works, Wheel and Axle Plant, Diesel Modernization Works, Rail Wheel Plant, Modern Coach Factory and Rail Coach Factory.

According to the report, even the opposition parties including Congress have opposed these plans. On just three firms bidding for the production of Vande Bharat train sets, the Railway Board Chairman said it was a domestic tender with local content requirement increased to over 75%. Yadav further said that technical evaluation was going on, following which the financial bid will be open.

In the month of September this year, around a month after cancelling the tender for developing as many as 44 Vande Bharat train sets, fresh tenders were invited by the national transporter for manufacturing the semi-high speed train sets focusing on Indian manufacturers and promoting the Modi government’s ambitious ‘Make in India’ policy.

The Railway Ministry, in a statement, had said the revised tender of 44 Vande Bharat trains sets has been floated by the national transporter for which the pre-bid meeting will be held on 29 September 2020. The tender will open on 17 November 2020, the ministry had stated. According to the officials of the Railway Ministry, train sets shall be produced at Integral Coach Factory in Chennai, Rail Coach Factory in Kapurthala and Modern Coach Factory in Raebareli.

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