Friday, July 23, 2021

Indian Railways to Roll Out Its Largest Ever Tender in History

Indian Railways, the largest public sector enterprise in India will put out its largest tender for 22,000 wagons in the current fiscal year. The cost of this order is being estimated to be over INR 7000 crores. On an average, Indian Railways purchases 8000 wagons in a year but now it will roll out a tender expecting a reduction in cost for the bulk order. Indian Railways expects to cut wagon costs by 15-20% through this bulk order. 

Largest Tender in The History of Indian Railways

This is the largest tender the Indian Railways has ever issued in terms of the number of wagons and expenses. The officials of the Railway Ministry said that the bulk order is in line with the future demand. It was only recently that Piyush Goyal, Indian Railways  Minister urged the industry to intensify its wagon manufacturing capacity. The minister had earlier said that while 1000 wagons are needed per month, but the industry is only able to provide 400.

The orders of this bulk tender would be distributed through a reverse e-auction model. If the lowest bidder is unable to deliver the entire order then the second lowest bidder will get the order and he would not need to process a fresh tender.

Freight Transportation is the only area of the Indian Railways, which reaps profits. The share of revenue of the national transporter from freight is 60%. Indian Railways otherwise incurs a loss of 30,000 crores each year in the passenger segment. Indian Railways aims at ramping up its freight capacity significantly in the next two years. It is hoping to have 3300-kilometre long freight corridors by the end of 2020. The Indian Railways is hopeful of being able to carry 2300 million tonnes of freight by 2020.

More News at EurAsian Times

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