New Delhi: Indian Railways on Tuesday announced a fresh set of structural reforms aimed at improving project execution, encouraging private sector innovation in freight transportation and making logistics more efficient, with Railway Minister Ashwini Vaishnaw unveiling the measures during a press conference as part of the ministry's broader plan to implement 52 reforms this year.
A key reform tightens contractor eligibility for railway projects. Contractors will now have to provide an upfront performance security of 10 per cent before work begins instead of deductions being made from running bills. In addition, contractors whose pending litigation exceeds 50 per cent of their net worth will not be eligible to bid for railway contracts. Professional indemnity insurance and all-risk insurance have also been introduced to strengthen project management.
