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Blog Entry# 1950257  
Posted: Aug 03 2016 (09:01)

1 Responses
Last Response: Aug 03 2016 (09:01)
Rail News
Commentary/Human Interest
Aug 03 2016 (07:11)   'Railways’ contract system needs overhaul'

rdb*^   131628 news posts
Entry# 1950257   News Entry# 275763         Tags   Past Edits
The contract system of the Indian Railways needs an overhaul coupled with the need for greater transparency from the industry, top Railway Board officials said on Tuesday.
“The present contract system of IR functioning need to be reviewed to see whether they can still serve the purpose and deliver. But what is also required is full transparency from the industry,” said S. Mookerjee, Financial Commisioner, Railway Board at an event organised by Confederation of Indian Industry (CII) here.
He said the Indian Railways spends about Rs 1 lakh crore annually towards contractual payments
related to work and supply contracts covering both revenue maintenance and construction projects. Mr. Mookerjee suggested that the onus of quality control could be with the contractor with “deterrent” penalty provision for “substandard work.”
In its report, the CII said vendors face challenge in dealing with the Indian Railways as the “adoption of contractual conditions has not kept pace with the changes taking place in large contracts.”

Aug 03 2016 (09:01)
For Better Managed Indian Railways~   1933 blog posts
Re# 1950257-1            Tags   Past Edits
Today cost per km of new line is estimated at Rs 10 crores/annum where as about 10 years back it used to be in the range of 1-1.5 Crore Rs/KM. The cost of steel & cement has increased at much slower rates.
Design speed of BG track is usually 160 kmph and new track is seldom found fit above 110 kmph.
Almost all (barring a few) projects are completed with much delay and cost overrun.
The efficacy of the contract system as well as the whole project management system including the approval, allocation of funds & implementation need a total overhaul with a holistic view, so that the quality of construction, timely commissioning & financial performance thereafter is ensured, much to the benefit of IRlys/ people/ national economy.

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