Indian Railways Awards Rs 818 Crore Wagon Contract to SAIL-RITES Joint Venture

SAIL and RITES JV to Manufacture 2000 BOXNHL Wagons, Enhancing Rail Transport Capacity


The Indian Railways has awarded a significant wagon manufacturing contract valued at Rs 817.74 crore to the joint venture of Steel Authority of India Limited (SAIL) and Rail India Technical and Economic Service (RITES). The joint venture, SAIL-RITES Bengal Wagon Industry Pvt. Ltd. (SRBWIPL), secured the tender for 2000 Bogie Open Wagons (BOXNHL) in the last week of April 2024.

Joint Venture Details

SAIL-RITES Bengal Wagon Industry Private Limited (SRBWIPL) is a Joint Venture Company (JVC) of SAIL and RITES, each holding an equal equity stake of 50%. SAIL, a Maharatna PSU, operates under the Ministry of Steel, while RITES, a Navratna PSU, is overseen by the Ministry of Railways.

SRBWIPL has received a Letter of Acceptance (LoA) from Indian Railways for the manufacturing and supply of 2000 BOXNHL Wagons. The total contract value is approximately Rs 817.74 crore, and the project is scheduled to be completed by June 30, 2026.

Contractor’s Responsibilities

The contractor, SRBWIPL, has a series of responsibilities to ensure the successful manufacturing and deployment of the wagons:

  1. Inspection and Dispatch: Upon satisfactory inspection of the wagons, RDSO will issue a Dispatch Memo to the manufacturer authorizing their dispatch.
  2. ‘FIT TO RUN’ Certificate: The manufacturer will approach the nominated Train Examination Supervisor to obtain a ‘FIT TO RUN’ certificate.
  3. Wagon Examination: The Train Examination Supervisor will examine the wagons and issue the necessary certificate for movement to the nearest station.
  4. Station Master Coordination: The manufacturer will coordinate with the Station Master to draw the wagons from the siding.
  5. Brake Power Check: The Station Master will offer the wagons to Train Examination Staff for a Brake Power check and issue the Brake Power Certificate (BPC).
  6. Acceptance and System Integration: The Station Master will inform the Division Railway Manager (Mech) and other relevant parties of the wagons’ acceptance and integration into the system.
  7. Notification to Owning Railway: The DRM (Mech) will notify the owning Railway and all concerned parties of the wagons’ acceptance based on the Dispatch Memo and BPC.

The SAIL-RITES contract marks the first wagon procurement tender awarded by Indian Railways for the financial year 2024-25. The interim budget for this fiscal year has earmarked Rs 41,086.09 crore for the acquisition of rolling stock, including engines, wagons, and coaches. This is an increase from the revised estimate of Rs 40,395.87 crore for the fiscal year 2023-24.

This substantial investment in rolling stock is expected to boost the efficiency and capacity of Indian Railways, particularly in transporting essential commodities like coal and iron ore.

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