IT Cos eyeing for Rs.2500 Crore biggest ever IT deal on Indian Railways

Indian IT Companies would be bidding for the largest IT deal in Indian Railways history that looks at Digitization and GIS Mapping of Land Assets of Indian Railways.

A Rs.2500 crore deal has been publicised by the Indian Railways and the IT big boys have started lining up for it. It is the first and possibly the largest deal by the Modi government. The deal is to digitise the data on Indian Railways, and sort of centralise the entire IT infrastructure and application data systems that are available for them.

The Minister of Railways D.V.Sadananda Gowda has, on 8th July, 2014 said that Indian Railways hold vast land assets which need to be digitized and GIS mapped for better management and usage. Presenting the Railway Budget in Parliament, Minister said the resources mobilization using land assets will be explored through private participation in setting up railway related business in railway lands as well as for commercial development. This would hold Railways in protecting the lands as well as leveraging it for raising resources.  To this effect, for the overall efficient management of this massive technology driven aspect that which would essentially be simplifying the process for Indian Railways and putting it under one roof, the government has asked for request for quotation (RFQ), whose base price has been approximately set at around Rs.2500 crore.

Working of the deal

Government will set a base bid price and individual IT companies will bid for it depending upon the kind of muscle that they have.

Possible bidders

Sources say Wipro, TCS, Infosys are bidding for this and are in the process of applying. However, Wipro and TCS could possibly have a lead over Infosys when it comes to the domestic IT deal. Interestingly, even players like IBM and Accenture are actively looking at this deal because this is the first deal in the Modi government. The player that bags the deal could get a leg-up in the other deals that are likely to come in for MPLS-VPN, Data Centre including DR, Compute, Storate, Virtualisation, Routing, Switching, Security and Firewall, WAN Acceleration, Bandwidth Management, Managed Services, Engineering, Designing and Consultancy services around the envisaged Digitization Plan of IR.  Also, various Systems Integrators and like IBM, HP, Dimension Data, Sify, Riverbed, Cisco, EMC, Aruba, Juniper etc are also in the race either directly or in partnership with the Prime Bidders.

Sources suggests, deals worth Rs 5000 crore could be up for grabs by year-end.