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The Indian railways are all set to introduce new clauses/ amendments in policies to accommodate and promote local content in its procurement process. It is being done in order to invite more bids from the native suppliers, which would subsequently boost the government’s mission of ATMA NIRBHAR BHARAT. A recent statement from the national transporter said that the Railway Ministry has sought the support of the Department for Promotion of Industry and Internal Trade (DPIIT), to incorporate into necessary changes in the policy if any. The same statement said that “In a review, meeting held on Saturday for steps to promote Make in India products in the procurement process, it was emphasized to increase the participation of local vendors.”

Meanwhile, the Minister of Railways, Piyush Goyal reviewed the steps to promote Make in India products in the procurement process of Indian Railways as well as the government of India.

While reconsidering the steps to promote MAKE IN INDIA products, it was highlighted that increased participation of local vendors in the procurement procedure would yield great results. It was emphasized that the DPIIT shall actively participate in achieving the same, by making necessary amendments in the existing policies, to facilitate the efforts of Indian Railways in this regard. Further in the meeting, it was suggested that measures should be taken to induce confidence in the railway industry for corruption-free, and transparent environments in the procurement process.

Other suggestions included the creation of a FAQ section and a helpline number to clarify the queries of native vendors on issues relating to the procurement process, in order to make the participation smooth and effective.

Further, a detailed presentation addressing the same topic was delivered by the materials management members of the Indian Railways; which talked about steps taken to procuring through the Government e- Marketplace (GeM) and the progress made.

Subsequently, Railway Minister Piyush Goyal, concluded the meeting while citing special emphasis on procurement of good and services in this sector, by the local suppliers/vendors, approximately of about Rs. 70,000 crores through the GeM platform and by reaching the remote areas, especially the MSMEs. In the meeting, deliberations took place as to setting up of single step, a user-friendly web interface for dealing with all activities. Special measures would be taken to ensure transparency, fairness, and smooth dealing experience to all interested vendors. The working environment and terms would be made clear to each supplier to make sure that the transaction is corruption-free.

The Indian Railways is taking initiatives to boost the participation of local suppliers which would ultimately result in effective achievement of the government’s initiative of a self -reliant and progressive India.


(This news has been written and submitted by Ms. Mansi Batra during her course of internship at B&B Associates LLP. Ms. Mansi is a third-year law student at the Fairfield Institute of Management and Technology, Kapashera, New Delhi.)


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