PSUs will now compete with Private firms for rail contracts: Railway Board

This decision taken by Railway Minister Ashwini Kumar aims to cut down on paybacks, bring in more competition and thus lower the Railways' cost: Sources.

PSUs will now compete with Private firms for rail contracts: Railway Board

New Delhi: According to the order issued by Railway Board, now public sector companies, including those which are under the national transporter will compete with the private sector firms in the open market for rail contracts. 


The board issues order on Tuesday, in effect, takes away a level of protection the PSUs enjoyed under a policy formed in 2019 which gave them dibs at juicy rail contracts, according to PTI


It added, the order states, "The policy approved by the Board, in their meeting held on 19.12.2019 to introduce competition amongst the PSUs for awarding Railway works, hereby stands withdrawn with immediate effect,"

This decision taken by Railway Minister Ashwini Kumar aims to cut down on paybacks, bring in more competition and thus lower the Railways' cost, sources add.

Read Also : Coal India Organises Training programme for capacity building