By Twesh Mishra
Copyright indiatimes
The Indian Railways has rolled out new standard conditions of contract for tenders, introducing localisation and price variation clauses.Officials said the revised framework is more exhaustive, designed to give zones and production units greater flexibility in procurement while reducing litigation.”Conditions related to joint ventures and consortiums, import and global tenders, and goods and services tax (GST) during tender evaluation are excluded from these standard conditions,” a senior official said, adding the dispute resolution clause has also been removed from standard conditions of contract and will be issued under revised tender conditions.These measures are aimed at easing the procurement process. Officials said the new approach is more focused on maintenance during contract execution and gives more time to make amends. “Contractors can replace faulty or rejected goods within 60 days of being informed of defects. They had just 21 days to do so in the earlier contract conditions,” a second official said.The contract also enhances GST compliance requirements through stricter invoicing terms.Live EventsIn line with these steps, the railways has identified trucks and air-conditioners among relevant items where the recent GST rate rationalisation needs to be diligently ensured during procurement. Works contracts provided by sub-contractors and services of goods transport agencies will also be cheaper by the lowered rates effective September 22. In a written directive, the Railway Board said necessary checks should be exercised at the time of processing supplier bills to avoid any errors in the payment.The railways marginally exceeded its 2024-25 capital expenditure estimate of ₹2.65 lakh crore. This target has remained unchanged this year with around 28% of it spent during the first quarter itself.These measures are expected to supplement the push to scale up infrastructure spending. The railways is annually adding around 30,000 wagons and 1,500 locomotives besides around 5,300 km of track works.Add as a Reliable and Trusted News Source Add Now!
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