Indian Railways opens door to private steel manufacturers.

The Financial Express

Asia’s largest rail networks, The Indian Railway network is expecting a massive rise to plug the steel supply shortages, pretty soon. It is being said that the Indian Railways has a plan to procure the rail lines in wake of ending the state-run suppliers’ monopoly. It has floated a global tender for upraising a number as massive as, 700,000 metric tons of steel rail lines to upgrade its age old British-era tracks with the advances of modern day creations.

Piyush Goyal, the railway minister addressed this much anticipated up gradation which is sleeked only after ensuring a competitive costing as well as promised quality supply. This massive up gradation was funded amidst Prime Minister Narendra Modi’s want for a better network railway lines. He aided an impressive amount of Rs. 8.6 Lakh crore to modernize the passenger and freight movement railway network. This up-gradation will not only provide for a safer journey, but also great decrease in travel time.


Anyway, prior to this anticipated up gradation of rail lines, Indian railways has calculated an annual rise for demand of steel rails. The amount calculated for a 12-month long period was 800,000 tons.

However, this up-gradation will prove to be quite a challenge for the SAIL given their high debt levels added by a continuous loss from past couple years. SAIL has been enjoying a fair deal of monopoly game as far as the supplies to the Indian railways have been concerned until this day. But now, since the up gradation is announced SAIL is going to be facing a profound pressure to meet the demands and expectations with a modernized quality. This will be an indefinite benefit to the only non-state steel producer Jindal Steel & Power Ltd given the inability of SAIL to ramp-up its production.

Hence, it is only safe to say that SAIL’s pain is Jindal’s gain! Although, Jindal has been accounting debts and losses in its history, as well, but it is not unknown a fact that Jindal powers have gracefully come out of these situations unlike, SAIL. After years of efforts to make inroads into the segment with Indian Railways, Jindal has finally succeeded itself a long-life tender.

The non-state company proudly boasts its capacity to produce 800,000 tons of rails and beams, just as much as our demand is calculated to be rising; says this strategy and development head from Jindal Steel.

Article by Pooja G.

Indian Railways opens door to private steel manufacturers.


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