Advertisement
When should a housing society in Mumbai start considering re...
From GST on JDAs to SEBI’s REIT reclassification and the S...
Stay ahead in the world of real estate with our daily podcas...
Stay ahead in the world of real estate with our daily podcas...
Indian Railways has revised its contract execution framework to improve construction quality and reduce delays in infrastructure projects. Contractors bidding for projects above INR 10 crore will now be evaluated for execution capacity, while limits have been placed on subcontracting to ensure accountability. Additional safeguards such as mandatory execution plans and extra performance guarantees for unusually low bids have been introduced. The Railways has also rolled out changes in freight handling and passenger services, including new wagon designs and updated ticketing rules, as part of broader efforts to improve efficiency and service delivery.
Indian Railways has rolled out a revised contract execution framework to improve construction quality and ensure timely completion of infrastructure projects. The new rules aim to bring better discipline in project execution and address delays that have affected several railway works in the past. Advertisement
As part of the changes, contractors bidding for projects above INR 10 crore will now undergo a detailed assessment of their execution capacity. The Railway Ministry indicated that this step is meant to ensure that only contractors with adequate financial strength, technical capability, and manpower are awarded large projects. In earlier cases, contracts were awarded to bidders who later struggled to execute them, leading to time overruns and cost pressures.
Another key reform is the restriction on subcontracting. Contractors will now be required to directly execute at least 60% of the total project value, while only up to 40% can be subcontracted. This is expected to improve on-site supervision and reduce the practice of excessive outsourcing, which often impacts quality and accountability.
To strengthen monitoring, contractors will also need to submit a clear execution plan before starting any project. This plan will outline timelines, resource deployment, and milestones, allowing railway authorities to track progress more effectively. The move is aimed at reducing uncertainty during execution and ensuring that projects move as per schedule.
In addition, the Railways has introduced stricter conditions for bidders quoting significantly lower than the estimated project cost. Such bidders will now have to provide an additional performance guarantee. This step is intended to discourage aggressive underbidding, which has been a common issue and often results in compromised quality or stalled projects.
These reforms build on earlier changes in railway contracting, including the adoption of the Engineering, Procurement and Construction (EPC) model. The EPC approach was introduced to improve accountability by assigning single-point responsibility to contractors, helping reduce disputes and delays in large infrastructure projects.
Alongside construction reforms, Indian Railways has also announced operational improvements in freight and passenger services. For freight movement, new stainless-steel containers have been approved for transporting salt. These containers are designed with top-loading and side-unloading features, which can reduce handling losses and improve efficiency in bulk transportation.
In the automobile logistics segment, the Railways has allowed more flexibility in the design of high-capacity double-stack wagons, subject to safety approvals. This change is expected to support increasing demand from the automobile industry and improve overall freight capacity utilisation.
On the passenger side, rules have been relaxed to allow travellers to change their boarding station up to 30 minutes before train departure. At the same time, refund rules have been tightened to prevent misuse of bookings. Authorities have also taken action against suspicious user accounts to address issues related to ticket hoarding and ensure fair access for passengers.
Overall, the revised framework reflects a structured effort by Indian Railways to improve project execution standards while also strengthening its service delivery systems.
5th Jun, 2025
25th May, 2023
11th May, 2023
27th Apr, 2023
Advertisement
Facebook
Whatsapp
