Track renewal takes priority! Indian Railways to float new Rs 2700 crore global tender for 4.5 lakh MT rails

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Published: November 22, 2018 2:06:42 PM

Due to the shortage in supply of rails by Steel Authority of India (SAIL), and global players failing to qualify, Indian Railways has decided to float a new global tender worth Rs 2,700 crore for the supply of 4.5 metric ton of rails

track renewalIndian Railways to float new global tender for 4.5 metric ton rails worth Rs 2700 crore for track renewal

After an earlier bid failed to take off, Indian Railways will now float a fresh global tender for the supply of 4.5 metric ton of rails which is valued at around Rs 2,700 crore. This comes after the Indian Railways network placed a developmental order of Rs 536 crore for one lakh ton of rails to Jindal Steel and Power (JSPL) as part of a global tender. Owing to the shortage in supply of rails by Steel Authority of India (SAIL), and global players failing to qualify, the national transporter has now decided to float a new tender, states a PTI report.

The remaining international bidders, including Sumitomo Corporation, Angang Group International, Voestalpine Schienen, East Metals, CRM Hong Kong, British Steel France Rail and Atlantic Steel, were edged out since they did not meet the criteria set by Indian Railways. In the round, no foreign player could match the specifications and requirements set by Indian Railways as there was some or the other shortcoming with each player, the report said. Hence, at the highest level, it was decided that if they are not matching requirements, then their offers were to be rejected.

A senior railway official was quoted in he report saying that Indian Railways will float the global tender soon to meet the shortfall of rails from SAIL. He added that the requirement of rails for the year 2018-2019 is around 16.66 lakh metric ton, but SAIL will be able to provide only about 10 lakh metric ton. For the year 2017-2018, the requirement was 14.59 lakh metric ton of rails. However, SAIL as per their projection, had given a commitment of supplying 9.5 lakh metric ton rails during that period. Even after having many production units at various cities, SAIL could not meet the production demands.

These global tenders are the first instances in which the railways has looked beyond the state-run SAIL as its supplier as it is now highly unlikely that SAIL will meet the demands of the set targets.

The official was quoted saying that the additional rail tracks will help the railways towards clearing the track renewal backlog. Indian Rilways has a track length of around 1,15,000 km, making it the world’s largest network under a single management.

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