Indian Railways has floated a global tender to procure rails, a move that may end the monopoly of state-run supplier Steel Authority of India Ltd. as Asia’s oldest network seeks to plug a supply shortfall.
The state-run freight and passenger carrier is seeking to buy 700,000 metric tons of rails for track upgrades, Railway Minister Piyush Goyal said. The move will ensure steady supplies and competitive prices. Jindal Steel & Power Ltd., one of the biggest non-state steelmaker, may benefit as it’s the only other local producer of this grade, according to Goutam Chakraborty, an analyst at Emkay Global Financial Services.
“If Steel Authority cannot supply, then they will go in for other producers. So in that way, JSPL will definitely be benefiting,” Chakraborty said by phone from Mumbai. “The railways’ first preference will always be Steel Authority.”
Prime Minister Narendra Modi is pouring about 8.6 trillion rupees ($132 billion) to upgrade the aging lines of the network that was started under British colonial rule. Giant track-laying projects are underway to modernize passenger and freight movement . Read More…
Latest posts by The Economic Times (see all)
- Petrol, diesel under GST not possible till revenues stabilise: Arvind Subramanian - December 11, 2018
- Coal India to spend Rs 1,000 crore on executives’ salary hikes this year - December 11, 2018
- Finance ministry to push through two more M&As among energy PSUs to meet selloff target - December 10, 2018