13 Firms Bid To Supply 21,758 Wagons To Indian Railways Through Reverse Auction Method

13 Firms Bid To Supply 21,758 Wagons To Indian Railways Through Reverse Auction Method

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Date of Post: 30 Aug, 2018

New Delhi: In a first, Railways is set to opt for the reverse auction method to decide on its wagon tender as 13 players have entered the race to manufacture 21,758 wagons at an estimated cost of Rs 5,600 crore. The order includes about 9 types of wagons, including covered, flat, open, brake van and regular ones, to be supplied by the successful bidders in the next 2 years.

More Information:

  • A senior railway official said,”The Railways will get about 7,000 wagons in the first six months after awarding the contract. It is for the first time that wagon tender will be decided through a reverse auction.”
  • In a reverse auction, the sellers compete to obtain business and prices typically decrease as the sellers underbid each other after the lowest price is made public.
  • The reverse auction ensures transparency and the most competitive price for the purchase as the order of more than 21,000 wagons is largest so far in one go, the official said.
  • Major wagon manufacturers, including Titagarh, Cimmco, Texmaco, Jupiter, Besco and Jindal Rail Infrastructure, are among 13 bidders who had entered the race to bag the massive contract.
  • The technical bids were opened last week and are currently being scrutinized at the RDSO (Research Design & Standards Organisation) for eligibility criteria.
  • This will be followed by the financial bid – and, finally, the reverse bidding will decide the contract.
  • The Indian Railways has a fleet of around 2.5 lakh wagons.
  • Wagon demand witnesses increase during the peak season between December to March when the transportation of foodgrain, fertilizer, and cement goes up.
  • Loadings of coal, iron ore and steel continue round the year.

Image Credit: Adityamadhav83 – Wikimedia Commons


Deepak Kumar is a part of the content team of Rail Analysis India as a writer and analyst .
His focus is on new initiatives on the Railway Sector of India . 
Please reach us at editor@railanalysis.com for more information


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