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Indian Railways has revised its standard tender contract conditions, introducing localisation and price variation clauses to improve procurement flexibility. The updates remove certain clauses related to joint ventures, consortiums, international tenders, and GST evaluation during tenders, while the dispute resolution clause will be issued separately. Contractors now have 60 days to replace defective goods, compared with 21 days earlier. Stricter GST compliance is enforced on items like trucks, air-conditioners, and subcontracted works. The Railways has retained its INR 2.65 lakh crore capital expenditure target for the year, with about 28% spent in the first quarter.
Indian Railways has recently updated its standard tender contract conditions to provide more flexibility in procurement and ensure better compliance with regulations. The revised rules introduce localisation and price variation clauses to help adjust for regional sourcing and market fluctuations. These changes are aimed at giving zonal and production units greater autonomy and reducing disputes in procurement processes. Advertisement
A senior official noted that certain conditions, including those for joint ventures, consortiums, import and global tenders, and GST evaluation during tenders, have been removed. The dispute resolution clause will now be released separately under revised tender conditions.
One of the key updates is the extension of timelines for contractors to replace faulty or rejected goods. The period has increased from 21 days to 60 days after defect notification, allowing contractors sufficient time to rectify issues. Additionally, stricter GST compliance is being enforced, with tighter invoicing requirements for trucks, air-conditioners, subcontracted works, and goods transport services. The Railway Board has instructed careful checks while processing supplier bills to prevent errors.
On the infrastructure front, Indian Railways slightly exceeded its INR 2.65 lakh crore capital expenditure for the 2024-25 fiscal year and has kept the same target for the current year. About 28% of the allocation has already been utilized in the first quarter. These measures support the ongoing expansion, including the addition of roughly 30,000 wagons, 1,500 locomotives, and 5,300 kilometers of track annually.
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