Asia's Oldest Railway Opens Door to Private Steelmakers
- Railways seeks 700,000 tons of rails in tender: Minister Goyal
- Jindal Steel and Power seen as a key beneficiary from move
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Indian Railways has floated a global tender to procure rails, a move that may end the monopoly of state-run supplier Steel Authority of India Ltd. as Asia’s oldest network seeks to plug a supply shortfall.
The state-run freight and passenger carrier is seeking to buy 700,000 metric tons of rails for track upgrades, Railway Minister Piyush Goyal said. The move will ensure steady supplies and competitive prices. Jindal Steel & Power Ltd., one of the biggest non-state steelmaker, may benefit as it’s the only other local producer of this grade, according to Goutam Chakraborty, an analyst at Emkay Global Financial Services.