Date of Post: 24 July, 2018
New Delhi: The Rs 2,500 crore global tender for the supply of long rails will open today, sources in the railway ministry said. The railways had to invite the global tender for procuring about 4.87 lakh metric tonnes of rails to meet the shortfall of supply from the SAIL (Steel Authority of India Ltd).
The sources said, the financial bids for the rails will be opened at 3 pm.
- 7 foreign steel companies and the Jindal Steel and Power Ltd (JSPL) have bid for the contract.
- This is the first time in 3 decades that rail procurement has been opened for the private sector.
- JSPL, the only Indian steel maker in the fray, is expected to get an assured order of 20% under the ‘Make in India’ clause.
- The 7 foreign entities are-
- Sumitomo Corporation
- Angang Group International
- Voestalpine Schienen
- East Metals
- CRM Hong Kong
- British Steel France Rail
- Atlantic Steel
- Till now, the Indian Railways was procuring rails from government-owned SAIL.
- It decided on an extra global tender after anticipating that SAIL would not be able to supply the 7,17,000 tonnes required for 2017-18 and 2018-19, as estimated at that time.
- The railways is looking at 4,000 km of track renewal in each of the next two financial years – 2018-19 and 2019-20.
- Its estimated cost for 2018-19 is a little above Rs 10,000 crore.
Narinder Sharma is a part of the content team of Rail Analysis India as a writer and marketing executive.
His interest is in the Railways , Metro and Transportation Sector of India .
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