Indian Railways Awards Besco Limited ₹485 Crore Contract for 1200 BOXNS Wagons

Besco to Deliver High-Quality Wagons with Rigorous Quality Control Measures; Contract Marks Milestone in Rail Freight Enhancement

Wagon (representational image)

NEW DELHI (Metro Rail News): The Indian Railways has awarded Besco Limited a contract to manufacture and supply 1200 BOXNS wagons. The contract, worth approximately ₹485 crore (inclusive of GST), was finalised on December 28, 2023, following a successful bid on e-tender No. 2023RS19547TC.

The BOXNS wagons, which are bogie open wagons, are vital for transporting bulk commodities such as coal, iron ore, and other minerals across India’s extensive railway network. These wagons are designed according to the WD-02BOXNHL-2011 specification and the WD-05086-S-01 Design-F (U/F) index drawing, ensuring they meet the highest standards of durability and efficiency.

Delivery Schedule and Quality Assurance

The contract outlines a phased delivery schedule for the next two years. The initial tranche of 113 wagons will commence delivery on July 1, 2024, and be completed by December 31, 2024. Subsequent tranches will follow biannually until all 1,200 wagons are delivered by December 2025.

To maintain the highest quality standards, Besco Limited will appoint a third-party quality control agency of international repute selected from the standing panel of the Quality Council of India (QCI). This agency will ensure rigorous quality checks are performed at every stage of the manufacturing process. Additionally, the Research Design and Standards Organization (RDSO) will conduct inspections and issue necessary certificates, including the ‘FIT TO RUN’ certificate, before the wagons are dispatched.

Material and Cost Specifications

The contract specifies the use of high-grade materials for critical components. Stainless steel conforming to ASTM-A312 Schedule 40S Gr. TP 304 will be used for the brake, feed, and branch pipes, ensuring longevity and reliability. The total contract value includes GST at 18%, and the firm has provided a guarantee to pass on any additional set-offs/input tax credits to the purchaser.

The wagons’ pricing is subject to variation based on the escalation/de-escalation formula provided in Annexure-A of the contract. This formula accounts for changes in the wholesale price index for castings, mild steel flat, industrial worker CPI, and the transfer price of wheelsets from the Rail Wheel Factory, Bangalore.

Payment Terms and Security Deposit

Besco Limited will receive 90% of the payment upon submission of a bill supported by the RDSO inspection certificate and proof of delivery. The remaining 10% will be paid after the receiving railway authority certifies that the wagons have been received in complete and good working condition. 

To secure the contract, Besco Limited has submitted a security deposit of ₹29.10 crore through bank guarantees issued by ICICI Bank, valid until 2027.

Besco Limited is responsible for procuring critical components such as CTRBs, steel items, and wheelsets from RDSO-approved sources. The executive director (QA) of RDSO will oversee the final inspection and quality control, ensuring all wagons meet Indian Railways’ stringent requirements.

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