The Railways has placed a purchase order for 39,000 wheels for LHB coaches from Chinese manufacturer Taiyuan as supplies under ongoing contracts were affected due to the ongoing crisis between Russia and Ukraine, the government said on Wednesday.
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The purchase of these wheels was earlier planned to be done from a Ukrainian firm at 1.68% lesser price compared to the current order.
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.
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“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,” the Minister said, adding that 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 added that to tide over the crisis of wheels for LHB coaches, Indian Railways floated a tender for 39,000 wheels and placed an order on M/s TZ (Taizhong), Hong Kong with manufacturer M/s Taiyuan, China.
“This firm is registered with Department for Promotion of Industry and Internal Trade for wheels for LHB coaches as per Land Border policy of Government of India,” he said.
Further, he added that the rate on which the contract was placed on the China based firm was 1.68% higher than the rate per wheel given in LOA on Ukrainian firm.