‘Reconsider plus 30 option clause in Rly contracts’
A Parliamentary Committee has asked the Railways to re-consider withdrawing an option clause that allows wagon manufacturers to supply additional 30 per cent orders at the same prices.
By PTI |
NEW DELHI: A Parliamentary Committee has asked the Railways to re-consider withdrawing an option clause that allows wagon manufacturers to supply additional 30 per cent orders at the same prices.
"The (-)30 per cent option clause has been deleted by the Ministry from the contract. However, the (+)30 per cent option clause is still in vogue. It is also not in the interest of the wagon manufacturers as they are bound to supply the additional 30 per cent orders on the same prices offered during the preceding year and hence not market savvy.
"Therefore, the Railways should re-consider withdrawing the (+)30 option clause", the Standing Committee on Railways said in its 13th report presented in Parliament.
It also sought for wholesome efforts to be made by the PSUs manufacturing wagons with adequacy of material and motivated staff to enhance their performance and produce ordered number of wagons within the given time frame which would also justify their demand for enhanced orders for the next year and lead to more capacity utilisation.
Noting that the Railways have not taken any concrete action on their observation, it said that its suggestions be brought to the notice of all the wagon manufacturing PSUs either directly or through the Ministry of Industry so that PSUs may motivate their manpower, improve their efficiency and execute the orders within the given time frame.
Maintaining that its suggestion regarding freezing of backlog orders were still under examination, the Committee has said that such options might be one of the way out for the public sector units to get enhanced new orders.
It was also of the view that the examination be made at the earliest and the final outcome be intimated to it.
The Committee also wanted to be informed about the process to set-up a coordination committee consisting of directors from Ministry of Railways and Heavy Industry and Public Enterprises to review the supply of "free supply items" to wagon manufacturing PSUs and also to help in allocation of wagon orders.
Similarly, it also wanted holding of regular "buyer-seller" meet, particularly to see the configuration of steel in correct proportion to these units.
The Committee expressed concern over the Railways taking its recommendations in a "casual way" even after a lapse of almost 13 months.
"The Ministry was yet to advise the RDSO, the nodal agency for design and development of wagons, for associating the wagon manufacturers in development of new design of wagons," it said.
Therefore, it suggested that the Railway Ministry should advise the RDSO immediately in this regard and placed before it the developments within three months time.
Start a SIP with as low as ₹500 with ET Money App!
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
