Indian Railways set to issue largest order for 22,000 wagons: Report

The order could cost at least Rs 7,000 crore. The railways ministry hopes the bulk order will lower cost of the wagons by 15-20 percent

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Moneycontrol News 

Indian Railways may put out the tender for ordering 22,000 wagons worth Rs 7,000 crore in this financial year, The Economic Times reports.

The tender could indicate big orders for Texmaco Rail and Engineering, Titagarh Wagons, Jindal Rail and Jupiter Wagons, among other wagon makers, the report said.

The bidding will be done through the reverse e-auction process, where the lowest bidder will be given the order.

The Ministry of Railways hopes that the bulk order will help lower the cost of wagons by 15-20 percent, the report added. The ministry procures an average of 8,000 wagons each year.

"This is the largest tender in terms of size as well as amount that the Railways has ever issued," a ministry official told the paper.

"The bulk tender is being issued keeping future demand in mind. Currently, we are not able to serve to the larger clients as rakes are not available. The ministry is now ensuring the rakes are available to bulk consumers throughout the year," the official added.A meeting was held in Rail Bhavan last week between Railway Board officials and wagon manufacturers to discuss issues related to supply of wagons.