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Indian Railways’ axle tender goes to company with direct links to Chinese government


Indian railways

Indian Railways’ axle tender goes to company with direct links to Chinese government

New Delhi: TZ (Taizhong) Hong Kong International Limited has won a Rs 245 crore tender from the national transporter Indian Railways for the supply of axles. The company, which has direct links to the Chinese government, will supply 30,000 axles for wagons used by the railways for freight movement.
TZ Hong Kong is the international trading arm of Taiyuan Heavy Machinery Group Co., Ltd and is a state-owned enterprise and has direct links to the Chinese government, according to its website. Earlier, the company had received a tender TZ for the supply of wheels by the national transporter.
Axels will be manufactured at Taiyuan Heavy Industry Railway Transit Equipment Company Ltd at Dianzi Street in Taiyuan City, Shanxi, China.

“India does not have enough capacity to make wheels. Axle manufacturing, on the other hand, is something India is fairly comfortable with. So, the award to a Chinese company raises some eyebrows,” a person who keeps track of the sector told Economic Times on the condition of anonymity.

The railways, it is believed, decided to source axles from outside India anticipating increased demand this year which couldn’t be met by domestic suppliers.

It is worth mentioning here that tenders for supply of axles have been awarded to domestic companies from October 2020 onwards. The domestic firms include Metal & Steel Factory (Ishapore), Mishra Dhatu Nigam Ltd (Hyderabad), Saurabh Metals Pvt. Ltd. (Bhopal) and Steel Authority of India Ltd.

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The last company from outside India to bag an order for supply of axles to the Indian Railways was China’s CRRC Yangtze Tongling Co. Ltd. The order was placed in May 2020 for 6,000 semi-finished Linke Hofmann Busch axles.

TZ has been awarded the third tender in the current financial year. It had earlier bagged two tenders for supplying wheels to the railways, one including for the supply of 39,000 wheels for LHB coaches. Another tender awarded to TZ was for supply of 17,500 wheels meant for WAG9 locomotives and 8,166 wheels for Train-18 or Vande Bharat trains.



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