JSPL eyes larger share in railway order after debut, looks at big projects

After bagging its first order from the Indian Railways, Jindal Steel and Power Limited (JSPL) plans to enhance volume and supply rails to the national transporter in key projects, including bullet train.

JSPL has bagged “20 per cent” of the Rs 25-billion order to supply long rails to Indian Railways that floated a global tender for procuring around 487,000 tonnes of rails to meet the supply following a shortfall from the state-run Steel Authority of India Limited (SAIL). The volume of the order is around 100,000 tonnes.

“This is just a beginning; we are looking to emerge as a long-term partner for Indian Railways in building and modernizing country’s railroad network,” Pradeep Tandon, JSPL President, told Business Standard. The company will now aim to supply rail for ambitious projects, including metro, mono and bullet train, he added.

For JSPL, it took about 15 years to challenge the SAIL monopoly in rail supply to the Indian Railways since it started rail manufacturing in 2003. “Our team lead by Chairman Naveen Jindal worked untiringly and insisted that private players should also be allowed to compete,” he said, adding that JSPL also moved to Competition Commission of India but failed to get desired results.

Tandon said JSPL fought with world’s top manufacturers of rails in the global tender floated by Indian Railways and emerged as a winner. “The country has finally recognised JSPL’s potential and quality,” he added.

The company is fully geared up to commence faster delivery. The supply will be from JSPL’s Raigarh plant in Chhattisgarh that is the sole rail producing unit of the company. JSPL operates the country’s most advanced 1 Million Tonne Per Annum (MTPA) Rail Mill at its 3.6 MTPA integrated Steel Plant in Raigarh.

Besides Iran, JSPL has supplied rails to Bangladesh and dedicated freight corridor of India. The company has capabilities to manufacture single piece rails of up to 121 metre length and up to 480 metre (with three welds) for higher durability.