Snapshot
In a mega order of more than Rs 31,000 crore, Indian Railways has floated a tender for the procurement of 90,000 wagons.
Around 16 wagon manufacturers in India are competing to supply a part of this requirement over the next three years.
Indian Railways has received a good response for its mega tender to procure 90,000 wagons.
Around 16 wagon manufacturers in India are competing to supply a part of this requirement over the next three years.
Titagarh Wagons, Texmaco Rail and Engineering, Hindusthan Engineering and Industries Limited, Oriental Rail Infrastructure Limited, Jupiter Wagons, Jindal Rail Infrastructure Limited, Cimmco, Om Besco Railway Wagons Manufacturer, SAIL-RITES, Bengal Wagon Industry, and Braithwaite and Company are vying to be part of this largest-ever tender in the sector.
“Work on this is being done on a priority basis. There are about ten significant players who are likely to get major orders, and there are some players who may get developmental orders (to widen the base),” an official told Moneycontrol.
“We would like to procure as much as the market can offer over the next few years. Whether we would be able to do that over the next three or four or five years will need to be assessed – say, through longer-term contracts,” the official added.
In a mega order of more than Rs 31,000 crore, Indian Railways has floated a tender for the procurement of 90,000 wagons for unhindered transportation of coal, cement and food grains, among other goods, to achieve a loading target of 5 million tonnes per day.
The floating of Rs 31,500 crore tender is part of the railways’ big push in the infrastructure sector as promised in the 2022-23 Budget.
While 42,000 wagons are meant for coal transportation, 40,000 wagons are for cement and foodgrains, and the rest are for other goods.
The existing capacity of wagon manufacturers is about 30,000 wagons per annum, but they could not manufacture up to their capacities as past annual procurements were about 9,600 wagons only.
According to the railways, the tender will give impetus to industries to grow by utilising their total capacity and enhance their ability by 25 per cent.
This order will also help maximise utilisation of their workforce besides increasing employment generation at wagon manufacturing units.
The huge wagon tender is expected to boost all the other industries supplying the raw materials and components required for wagon production, such as steel, paint, pipe, manufacturing bogies, couplers, draft gears, and air brake and grease seals.
A senior railway official said all these items would be manufactured and supplied under the Make-in-India policy.
The national transporter’s move for the supply of 90,000 new wagons by Indian manufacturers is expected to develop confidence in the wagon industry, and this will also facilitate overall freight transportation across the country.