Indian state-owned national railway company Indian Railways has pruned its procurement of steel rails through global tender to 487,000 mt from the 700,000 mt planned earlier, expecting domestic steel major Jindal Steel and Power Limited (JSPL) to supply the difference, government sources said on Thursday, December 21.
Indian Railways is expected to award JSPL its maiden order for supply of steel rails in the current fiscal year and hence the volume planned to be sourced from global suppliers has been reduced, the sources said.
Until now, Steel Authority of India Limited’s Bhilai Steel Plant has been the sole supplier of rails to Indian Railways, but since the steel mill is expected to supply only 1,145,000 mt in the current fiscal year resulting in a demand shortfall of 314,000 mt this year, Indian Railways was forced to resort to imports, the sources added.
However, JSPL has made presentations before a committee comprising the ministries of steel and railways to establish its capabilities to supply rails as per the specifications and volumes of Indian Railways, the sources said.