RAIPUR: Chhattisgarh-based unit of Jindal Steel and Power Ltd (JSPL) will produce and supply one lakh tonnes of rail to Indian Railways in a period of one year after the company secured the major contract through a global tender.
The process is also seen as an end to the virtual monopoly of the Bhilai Steel Plant (BSP), one of the profit making facility of state-owned giant Steel Authority of India (SAIL), that exclusively supplied the rails earlier.
This is the first time when one of the top steel companies in private sector, JSPL bagged the order of the Railways that floated a global tender to buy rails from the market. The BSP failed to keep pace and lagged behind to meet the essential requirements of the national transporter. JSPL - owned by former Congress MP Naveen Jindal, edged out other 7 topmost manufacturers in the first ever global tender bid by Indian Railways for supply of rails.
Following the technical specifications, the JSPL remained the only bidder to qualify with a financial bid. "It's a significant development that showcases the spirit and ethos 'Make In India' initiative through the concerted efforts of our Chairman and the entire team of JSPL in Raigarh from where close to 1 lakh tonne of rails would be manufactured and supplied to the Railways within a year", the President (JSPL) Pradeep Tandon told the Express.
The JSPL cited that the company is confident to emerge as a long term partner for Indian Railways for building and modernising the country's rail network. "We will ensure swift pace on deliveries and be a partner with Railways in faster deployment of planned rail track rollout", Tandon affirmed.
The other seven global players who participated in the tender incuded Sumitomo Corporation, Angang Group International, Voestalpine Schienen (Germany), East Metals (Denmark), CRM Hong Kong, British Steel, France Rail and Atlantic Steel.
With the first order from the Railways, after being through all technical clearances based on global best norms, the JSPL aims at increasing its participation in proposed railway infrastructure modernisation in the coming years.
JSPL operates the nation's most advanced 1 Million Tonne Per Annum (MTPA) Rail Mill at its 3.6 MTPA integrated Steel Plant at Raigarh in Chhattisgarh. The company has already supplied Rails to national railways of Iran and Bangladesh besides the dedicated Freight Corridor of India. JSPL has capabilities to manufacture single piece rails of upto 121 metre length and upto 480 metre (with three welds) for higher durability.