Source: https://economictimes.indiatimes.com/industry/transportation/railways/railways-sets-the-wheels-in-motion-awards-tender-to-chinese-company/articleshow/91604022.cms
Publisher: ET
New Delhi: Indian Railways has awarded a contract for the 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 fallout of the Russia-Ukraine crisis as there is a dearth of rail wheel suppliers to India,” a senior rail ministry official said.
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 a land borders 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.
A registration committee was subsequently constituted by the Department for Promotion of Industry and Internal Trade (DPIIT). Political and security clearance from the ministries of external and home affairs was also made mandatory.
The tender for wheels was opened on April 4 this year and the railway ministry awarded it to TZ on May 2.
According to the Railway Board’s order awarding the tender, the place of manufacture of these wheels is Taiyuan Heavy Industry Railway Transit Equipment Company at Dianzi Steet in Taiyuan City, Shanxi, China. This is a part of Taiyuan Heavy Industry Co, Ltd (TYHI). ET has seen a copy of the Board’s order.
TZ Hong Kong International Ltd, the company that has been awarded the tender, is the international trading arm of Taiyuan Heavy Machinery Group Co, Ltd.
This company too traces its origins to a heavy machine plant founded in 1950 which was independently designed and built by the People’s Republic of China.
According to the company website, it is a state-owned oversize backbone enterprise. It has links to the Chinese government.
Focus on domestic manufacturing
Indian Railways has already begun work on local manufacturing.
“There is a need to develop the wheel manufacturing ecosystem in the country and domestic manufacturers seek longer-term visibility before investing in setting up facilities,” the officer said. “This is being addressed with the pipeline of new train sets that are to be manufactured.”
Railways launched the country’s first indigenous semi-high-speed train, Vande Bharat Express, on the New Delhi-Kanpur-Allahabad-Varanasi route in February 2019.
