Indian Railway had floated an e-Global Tender for Purchase of 717,000 MT Rail ( UIC 60kg (880 Grade, Prime class – A Rails of 25 m or 26 m). The last date for bid submission is 22-Dec-17 by 14:30 hrs. Following which opening of the bids shall take place at 15:00 hrs on 22 Dec’17.
The global tender is paving way for Jindal Steel & Power Limited (JSPL) which could win up to 20% of the global tender for steel rails as per a clause in the tender, the Indian railways in its overhauling the old tracks with a USD130 billion to improve efficiency and bring an end to the frequent train accidents.
The Ministry of Indian Railways last month opened up a global tender for 717,000 tonnes of steel rail worth an estimated USD 464 million to private bidders for the first time. Global steelmakers such as ArcelorMittal and Thyssenkrupp also the domestic steel player JSPL could bid for the tender.
Indian Railways is considering using a clause in the October 18 tender that allows for a “developmental” or a trial order of up to 20 per cent of the steel to be awarded to a domestic manufacturer. According to the tender it can award that work even if the bidder does not have proven performance of supply of rails.
Indian Railways has been procuring rails from SAIL under an agreement it had signed with the PSU. SAIL, the state run steel company is not able to fulfill the steel requirement of the railways and is expected to deliver only 920,000 tonnes of it this financial year, just 65 per cent of its target.
JSPL, supplies rail to Iran, Bangladesh, Mozambique and Brazil will be a strong contender as a domestic supplier and the railways ministry is likely to make a decision within two weeks and may award it to JSPL, India’s only private manufacturer of rails as per the preferential policy of the government on local producers.
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