Indian Railways awards tender to Chinese company for supply of 39,000 train wheel

Indian Railways awards tender to Chinese company for supply of 39,000 train wheel
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New Delhi: Indian Railways has awarded a contract for supply of 39,000 train wheels to a Chinese company after deliveries from other countries got affected because of the Russia-Ukraine conflict, sources told ET. The tender for solid forged wheels (rough turned) was awarded to TZ (Taizhong) Hong Kong International Ltd., they said.

“These wheels are for the Vande Bharat trains. This development can be seen as a fall out of the Russia-Ukraine crisis as there is a dearth of rail wheel suppliers to India,” a senior rail ministry official told ET.

While the value of the tender is just ₹170 crore, the move is significant in view of the restrictions imposed by New Delhi last July on investments and supplies from companies from countries sharing land border with India following the Galwan valley standoff with China. The last tender awarded to TZ was in March 2020.

Any vendor from countries sharing a land border with India would be eligible to supply goods or services—including consultancy and non-consultancy services-or projects, including turnkey ones, only if the entity is registered with the competent authority.