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Jindal Steel bags Rs 665 crore orders to supply rail to Indian Railways

May 10,2019

Steelmaker Jindal Steel and Power Ltd (JSPL) on Thursday said it has bagged an order of Rs 665 crore from Rail Vikas Nigam Ltd (RVNL) to supply 89,042 tonnes of rails. JSPL has won an order from RVNL "to supply 89,042 tonnes of UIC 60 kg IRS T-12 880 grade 13-meter rails for its upcoming projects," the company said in a regulatory filing.

 

"This order is indicative of JSPL's strategic commitment to growing its footprint in the domestic Rail segments," JSPL Managing Director Naushad Akhter Ansari said.

 

The filing added this is the second big rail order in less than a year. In July 2018, JSPL bagged the first-ever global tender for supply of rails to the Indian Railways. As per the terms of the global tender, JSPL was to supply close to one lakh tonnes of long rails, worth Rs 568 crore to Indian Railways over a period of one year.

 

JSPL said that it had completed the delivery in record time, 4 months ahead of schedule. Over and above, JSPL secured an additional order to supply 30,000 tonnes of rails under this global tender.

 

RVNL functions as an extended part of the Ministry of Railways. It is empowered to act as an umbrella special purpose vehicle (SPV) to undertake projects directly or by creating project specific SPVs, according to its website.

 

Part of the $22-billion OP Jindal Group, JSPL has a presence in steel, power, mining and infrastructure sectors. JSPL operates 1 million tonnes per annum rail mill at its Raigarh plant in Chhattisgarh where the required rails will be manufactured and supplied.