Indian Railways Aim to be Atmanirbhar, a Great Opportunity for MSMEs

Indian Railways Aim to be Atmanirbhar, a Great Opportunity for MSMEs

The government of India, under the leadership of Shri Narendra Modi, is working towards making India Atmanirbhar. As part of its steps towards this, Indian Railways has decided to invite MSMEs to become partners. It will be the first of its kind in history that allows small industries to cater to the needs of the third-largest railway network in the world.

The Indian Rail is looking towards contributors who can build coaches and engines and provide material for the management and maintenance of its properties. According to the reports, the railways will be buying goods of over Rs. 70,000 crores annually. So, this will be a good opportunity for MSMEs to acquire long-term contracts and ensure steady growth while the government is promoting Atmanirbhar Bharat Abhiyan.

The government will ensure a specific, impartial, and transparent process of purchase to encourage the involvement of small industries. It includes;

Make In India Policy

Under the Make In India policy, the government is encouraging the local production of raw materials and finished products for industrial and domestic use in the country.

As long as the rail components and parts are concerned, only those suppliers are eligible to apply who are using at least 50% locally produced raw material. It includes the supply of the goods to be used for manufacturing wagons, tracks, and LHB coaches.

Same way, 75% of the electronic components for Vande Bharat trains will have to be made in India.

Priority to MSMEs

The authorities have decided to give priority to MSMEs while selecting bids. The purpose is to encourage small entrepreneurs to come ahead and work with the government sectors. Further, it will also help small industries achieve sustainable growth by eliminating or reducing the fear of competition from large companies.

Under this policy, the government will choose the MSME with the lowest bid. In case the lowest bid is not from an MSME, priority will be given to an MSME whose bid is higher by up to 15%.

Increasing Ease of Doing Business

To encourage people to become entrepreneurs and create employment, the government has taken several concrete actions for making business easy. One of them is exemptions from earnest money deposits and security deposits for MSMEs.

Another relief is, there is no more need for new authorization from the Indian Rail. An authorized vendor for a good or category goods will be considered as authorized by the railway to supply any goods.

Those looking for more information on the list of annual requirements and tenders may visit and MSMEs can also register themself as vendors on these websites.

So, if you are an entrepreneur having a micro, small, or medium enterprise, you can be a partner of the Indian rail in the journey of development. Visit the links given above and check if you can contribute.

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