Date of Post: 10 Dec, 2018
Indian Railways has selected 5 players through the reverse-auction method to manufacture and supply over 12,000 wagons worth about Rs 4,000 crore. The national transporter has floated tenders to procure a total of 21,758 wagons of various types – covered, flat, open and guard vans – to cater to its growing needs in the next 2 years.
- A senior Railways official said,”We have finalised contracts for 12,611 wagons in the first lot through the reverse-auction process, which is being adopted for the first time in wagon procurement.”
- 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 carried out online ensures transparency and the most competitive price for the purchase as the order of more than 21,000 wagons is the largest so far, the official said.
- Railways has asked the 5 wagon manufacturers who have won the race in the competitive bidding to deliver a substantial number of wagons in the first 6 months.
- The 5 manufacturers are-
- Jupiter Group
- Modern Coach Factory
- Titagarh Wagons
- While Besco has got the nod for supplying 395 guard vans, the remaining 4 companies – Titagarh (5,058), Jupiter (2,894), Modern Coach Factory (2,643) and Texmaco (1,621) have to supply open wagons before February 2020.
- The Railways will take up the procurement of the next lot through the reverse-bidding process shortly.
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