In a significant development, the Ministry of Railways announced that they have amended their policy of allotment of railway tenders and have opened the space for the private sector to fight for bagging railway contracts.
The decision was announced by the Railway Ministry led by Union Minister Ashwini Vaishnaw, allowing the private sector companies to compete with the public sector. The decision also takes into account the public sector companies owned by the Railways itself, they will too face the competition for the allotment of Tender. The decision was taken keeping in mind the growth and development of Railways.
Railways tenders open for all in market as Ministry scraps policy for PSUs
The Railway Ministry revoked a previous policy, announced during Ashwini Vaishnaw’s predecessor Piyush Goyal’s tenure in December 2019, that required the Railway Board to screen and allocate work to eligible public sector firms. The winning PSU will next put out a tender for the actual work to be done among contractors in the open market. This policy was put in place so that Railways may benefit from competitive bidding among PSUs and gain a pricing advantage.