Railways awards a contract for 39,000 trains to a Chinese player

After deliveries from other countries were hampered by the Russia-Ukraine conflict, Indian Railways awarded a contract for 39,000 train wheels to a Chinese company. According to official sources, the tender for solid forged wheels (rough turned) was awarded to TZ (Taizhong) Hong Kong International Ltd, and these wheels are for the Vande Bharat trains.

This development can be viewed as a result of the Russia-Ukraine crisis, as India currently lacks rail wheel suppliers. While the tender is only worth 170 crore, it is significant in light of New Delhi’s restrictions on investments and supplies from countries sharing India’s land border in July following the Galwan valley standoff with China, and the last tender awarded to TZ was in March 2020.

In fact, any vendor from a country that shares a land border with India would only be allowed to supply goods or services, including consultancy and non-consultancy services, or projects, including turnkey projects, if the entity was registered with the appropriate authority. The Department for Promotion of Industry and Internal Trade then established a registration committee (DPIIT).

The tender for wheels was recently opened, and the railway ministry awarded the contract to TZ on May 2. Political and security clearances from the ministries of external and home affairs were also made mandatory. The wheels are manufactured at Taiyuan Heavy Industry Railway Transit Equipment Company on Dianzi Street in Taiyuan City.

Shanxi, China, according to the Railway Board’s order awarding the tender. Taiyuan Heavy Industry Co, Ltd owns this (TYHI). The company that was awarded the tender is TZ Hong Kong International Ltd, which is Taiyuan Heavy Machinery Group Co, Ltd’s international trading arm. According to official sources, this company also has its roots in a 1950 heavy machine plant that was designed and built independently by the People’s Republic of China.