Steel Authority of India Limited’s ability to scoop up a mega order from fellow PSU Indian Railways is under doubt just when it is ramping up its rail production capacity.
Indian Railways has floated a global tender for 7,00,000 tonnes, putting pressure on SAIL.
“We have floated a global tender to procure seven lakh tonnes additional rail, which will help us to ensure that the backlog of track renewal is cleared,” Piyush Goyal, railways minister, said.
Potential bidders have been asked to attend a session on November 21 on technical and commercial criteria of the tender, with the deadline for submission put at December 22.
SAIL supplies tracks to the national carrier. The annual crude steel capacity of SAIL, which was 14.3 million tonnes (mt) in 2015-16, would be ramped up to 50mt by 2025.
Steel minister Birender Singh has asked the PSU to ramp up production from its new rail mill in Bhilai. Read More…