MUMBAI: Riding on its ability to deliver rails to the Indian Railways (IR) ahead of schedule, Jindal Steel and Power Limited (JSPL) is looking for repeat orders from the national transporter.
JSPL had bagged 20 per cent of a Rs 2,500 crore global tender floated by the Railways to supply long rails in July 2018. For the first time, IR placed an order for rails with a private player. JSPL beat seven leading global rail manufacturers to technically qualify for the tender.
The process was necessitated as Steel Authority of India Limited (SAIL), the sole supplier of rails to the IR, allegedly failed to fulfill the order.
JSPL was to supply 97,400 tonnes of rails to the national transporter over a period of one year. The company dispatched the first consignment on August 15, 2018 and completed the delivery under the contract on April 22 this year–almost four months ahead of schedule.
“We are proud to have contributed to the government’s Make-In-India initiative and complete such a challenging project far ahead of schedule,” said Naushad Akhter Ansari, Joint Managing Director of JSPL.
The development would not only consolidate the company’s commercial position but would also strengthen its ties with IR. Company officials felt that the supply ahead of schedule was in IR’s interest. It would help in expediting infrastructure projects that were impacted by non-availability of rails.
JSPL had struggled hard to break SAIL monopoly in rail supplies to IR. But with this performance, it now plans to firm up its business with IR, and is eyeing a repeat order for which it has started the process of materialising the deal.
JSPL is the country’s only private sector maker of rails and head-hardened rails. The rails are made at its one-million-tonne-per-annum rail mill that forms part of its 3.6 MTPA integrated Steel Plant at Raigarh, Chhattisgarh.