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GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
LOK SABHA
UNSTARRED QUESTION NO: 539
ANSWERED ON:  20.07.2022
Procurement of Wheels
Mala Roy
Will the Minister of



RAILWAYS be pleased to state:-


(a) whether the Railways has decided to procure 35000 wheels from China instead of Ukraine;

(b) if so, the details and reasons therefor; and

(c) the details of cost implication of the said decision of the Government?


ANSWER
MINISTER OF RAILWAYS, COMMUNICATIONS AND
ELECTRONICS AND INFORMATION TECHNOLOGY

(SHRI ASHWINI VAISHNAW)

(a) Purchase order for 39,000 nos. wheels for LHB coaches has been placed by Indian Railways on M/s TZ(Taizhong), Hong Kong with manufacturer M/s Taiyuan, China against Global Tender.

(b) Due to the present war crisis between Russia and Ukraine, the supplies against the ongoing contracts on the firms from Russia and Ukraine were affected. Earlier, Letter of Acceptance (LoA) for 30,000 wheels for LHB coaches was issued on M/s KLW with manufacturer based in Ukraine. Subsequently, M/s KLW invoked Force majeure clause due to inability to supply on account of war crisis in Ukraine and formal purchase order could not be issued to Ukrainian firm.

To tide over the crisis of wheels for LHB coaches, Indian Railways floated tender for 39,000 nos. and placed order on M/s TZ(Taizhong), Hong Kong with manufacturer M/s Taiyuan, China. This firm is registered with DPIIT for wheels for LHB coaches as per Land Border policy of GoI.

(c) The rate on which the contract was placed on the China based firm was 1.68% higher than the rate per wheel given in LOA on Ukrainian firm.

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