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India on the domestic debate about whether a shortage of rail imported from abroad

Sep 05,2018
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India iron and Steel Ministry and the Ministry of Railways for the state-owned railway network construction period is from overseas, the domestic shortage of rail a dispute, it will seriously affect the prime minister modi (NarendraModi) in recent years to promote the efforts of India domestic infrastructure construction. 

In charge of fourth of the world's largest rail network in India, the Ministry of Railways managed to overcome a series of accidents. Modi's government hopes to conduct a thorough inspection of the railway India aging, but the state-owned steel makers steel authority of India (SAIL) the production of iron and steel supply shortage, slow down the progress of the project. 

Government tries to "made in India" to promote local production, but at the same time, the state-owned enterprises to the fastest time to get the most affordable product for the price, the contradiction between the two that the government faces the dilemma in a dilemma. 

India Rail Corp issued in October 18th 717 thousand tons of steel rail tender, this is the first time the company to seek overseas imports of steel rail. This tender, involving an amount of 30 billion rupees, or about $464 million, the bidding object including ArcelorMittal and Thyssen Krupp global steel. 

This batch of imported steel rail will make up for the next two fiscal year, India iron and steel supply administration. 

India Rail Corp in October 18th submitted to the Ministry of the steel documents mentioned in the 2017/2018 fiscal year, the steel authority of India (SAIL) for the project is expected to provide 920 thousand tons of products, only reached 65% of total demand. 

The document also said, 2018/2019 years, the steel authority of India (SAIL) plans to provide 1 million 300 thousand tons of products, has not yet reached the required 1 million 500 thousand tons of railway renovation. 

"We need to track steel, but the steel authority of India does not have the ability to provide, only this." Help the railway ministry of Railways Management Committee of India railway company AshwaniLohani said. 

AshwaniLohani said India railway company does not intend to change the bid, this is the first time the company seeking overseas rail. 

Steel authority of India did not respond to requests for comment. 

India iron and Steel Ministry urged India railway company not to destroy the "made in India" policy, the policy requires 500 million rupees or more infrastructure projects shall be used for domestic manufacturing of steel products. 

Three participants who said that officials of the Ministry of Railways to comply with the requirements of steel procurement standards at the meeting on Friday, the steel needed from the domestic steel manufacturers procurement of important infrastructure projects. 

India railway company insists that compared to the "made in India" policy, priority should be given to the safety of passengers, if the steel supply shortage or lack of special specifications of products, the government should allow exceptions. 

The letter mentioned steel Secretary ArunaSharma10 23 July submitted to Lohani, Department of the Ministry of Railways to comply with steel steel procurement process. 

Modi September appointed a new minister of railways, oversees a $130 billion for a period of five years of modernization project, part of the India railway company to update the repair operation of a total length of 92 thousand kilometers of track. 

Of the railway is the lifeline of 20 million people, these poor people every day by train. The Indian government grants 2 months 150 billion dollars for the elimination of defects caused by railway traffic accidents. 

Although the production efficiency is low, but the India state-owned companies such as India iron and steel authority (SAIL) is still in the main industrial and infrastructure projects play an important role of suppliers. 

Three participating stakeholders also revealed that, as the only alternative steel authority (SAIL) of the domestic steel suppliers, private enterprises Jindal Steel & Power (JindalSteelandPower) Conference on Friday expressed willingness to provide products and services will, but the Ministry officials worried that the company lacks experience in manufacturing steel rail.
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