Starting next fiscal year, Indian Railways will conduct reverse e-auctions for all supply tenders above Rs10 crore, and services and work orders above Rs50 crore.
Mint has seen a copy of the draft policy that will be unveiled this month.
The policy states this will eliminate human intervention and help bring more transparency.
Even a 10% savings in cost due to improved competition will result in overall annual savings of up to Rs10,000 crore for the national carrier. It will be applicable to all zonal railways, production units and railway companies like IRCTC (Indian Railway Catering and Tourism Corp.), Rites Ltd, RailTel Corp. of India Ltd and others.
Mint had reported about the reform last year, when the pilots were being performed.
A railway ministry official on condition of anonymity said, “The paperless transaction will help to offer more competitive bids and reduce corruption complaints. Besides, it will improve transparency and provide a level-playing field to the industry.” Read More…