Soon after bagging its first ever order from Indian Railways for the supply of close to 1 lakh tonne in 2018, Jindal Steel and Power Limited (JSPL) has been awarded an additional order for supply of 30,000 tonnes under the same global tender.
The additional order enhances the order size by over 30 per cent, with the overall order size now estimated at around Rs 650 crore.
“JSPL endeavours to emerge as the most preferred supplier of rails to Indian Railways for building and modernising domestic rail network,” said Joint Managing Director Naushad Ansari in a communication to stock exchanges on Monday.
So far, JSPL has supplied close to 62,400 tonnes of rails out of the earlier order and is on track to complete the 1 lakh tonne order ahead of time.
Indian Railways had floated a global tender for procurement of rails for the first time. Till JSPL became the first private sector rail manufacturer to supply rails, all requirements were being supplied by the government-owned Steel Authority of India Limited (SAIL).
The global tender was floated after SAIL’s production capacities were not able to cater to the increasing requirements of Indian Railways. Earlier under the global tender which saw participation from 7 leading global rail manufacturers, JSPL emerged as the only winner under the bid, bagging 20 per cent of the envisaged requirement.