The government is likely to bring in a 'reverse auction process' to supply rails for railway projects, Jindal Steel and Power Ltd (JSPL) Managing Director V R Sharma said. After the launch of the process, a company that offers lower prices can bag order of supplying rails to the Indian Railways, the industry executive said. "Recently, we apprised that Railways is going to launch a reverse auction process for the supply of rails. We are waiting for the government to launch the scheme, We are waiting for the government to launch the scheme," he told PTI while replying to a question related to JSPL's rail business” " he said.
Jindal Steel and Power Ltd (JSPL) and state-owned SAIL are the only companies in India producing various grades of rails at their facilities at Raigarh and Bhilai, both located in Chhattisgarh.
Sharma said that earlier, there was only one supplier Steel Authority of India Ltd (SAIL) to railways. "Now, more players are there in the competition. That's why the Indian Railways is going to launch the reverse auction process."
In July 2018, JSPL announced bagging 20 percent of the Rs 2,500-crore global tender by the Railways to supply long rails. Until then, according to a memorandum of understanding, the national transporter was procuring rails exclusively from government-owned SAIL.