Railways Orders Wheels From Chinese Firm; Costlier Than Deal With Ukraine

Railway Minister Ashwini Vaishnaw said the deal with the Chinese firm was struck to tide over the crisis of wheels.

Railways Orders Wheels From Chinese Firm; Costlier Than Deal With Ukraine
New Delhi:

The railways has placed a purchase order for 39,000 wheels for LHB coaches from Chinese manufacturer Taiyuan at a rate that is more than one per cent higher than that offered by a Ukrainian firm, the government informed Parliament on Wednesday.

In a written reply to a question in the Lok Sabha, Railway Minister Ashwini Vaishnaw said the purchase order for 39,000 wheels for LHB coaches has been placed by the Indian Railways with Taiyuan, China against a global tender.

"Due to the present war crisis between Russia and Ukraine, the supplies against the ongoing contracts on the firms from Russia and Ukraine were affected. Earlier, Letter of Acceptance (LoA) for 30,000 wheels for LHB coaches was issued on M/s KLW with manufacturer based in Ukraine.

"Subsequently, M/s KLW invoked force majeure clause due to inability to supply on account of war crisis in Ukraine and formal purchase order could not be issued to Ukrainian firm," Mr Vaishnaw said.

He said the deal with the Chinese firm was struck to tide over the crisis of wheels for LHB coaches. The minister added that the Chinese firm is registered with the Department for Promotion of Industry and Internal Trade (DPIIT) for wheels for LHB coaches, in accordance with the land border policy of the government of India.

"The rate on which the contract was placed on the China-based firm was 1.68 per cent higher than the rate per wheel given in LoA on Ukrainian firm," the reply said.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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