Rly Board Plan For Buying Wagons Via Reverse Auction Process Raises Concerns Of Aggressive Bidding


Rly Board Plan For Buying Wagons Via Reverse Auction Process Raises Concerns Of Aggressive Bidding

Having invested in track capacity over the past couple of years, the Railway Board is now ready to purchase wagons.

It wants to break away from the tradition of floating annual tenders, and is toying with the idea of bulk-tendering to meet the demand for the next five years.

The news has brought cheers to wagon makers, which have had low order books for the past two years.

There’s a catch

They have just one concern: in return for widening the market by at least five times from the current rate of procuring 10,000-12,000 wagons a year, the Railways wants the prices to remain flat for the five years.

According to the proposal, the Railways will outline the demand for the next five years and select suppliers through a reverse-auction method. The successful bidder(s) will be offered the opportunity to meet the demand for the five years at the same price. The Railways think this will help it save costs. Read More

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