
In a move to enhance construction quality, Indian Railways has announced significant changes to its contract execution framework.
The reforms are focused on ensuring that contractors are fully capable of executing large projects, minimising delays, and improving overall construction standards.
Effective immediately, Indian Railways will assess the capacity of contractors bidding for projects exceeding ₹10 crore.
According to Union Railways Minister Ashwini Vaishnaw, this will ensure that only capable contractors are awarded large-scale projects, thereby improving the quality of work and reducing delays caused by inadequate resources.
Furthermore, contractors must now work on 60% of the project value under their direct supervision, with only 40% of the work allowed for subcontracting. This new rule is anticipated to enhance project oversight and delivery efficiency.
To address frequent project delays, the Indian Railways will now require a detailed execution plan before beginning any project.
Contractors offering quotes significantly lower than the Indian Railways' estimated costs will be required to furnish an additional performance guarantee, providing further assurance of their capability and commitment to quality.
Indian Railways has also approved introducing new stainless-steel containers for salt transport, featuring top loading and side unloading capabilities.
Additionally, the auto industry has been granted the flexibility to design high-capacity double-stack wagons, pending safety approvals. These new wagons aim to improve the efficiency of goods transport across the nation.
Read More: Indian Railways Tightens Ticket Cancellation Rules: Late Cancellations May Mean Zero Refund!
In response to passenger feedback, Indian Railways has relaxed rules concerning train boarding stations, allowing commuters to change their boarding point up to 30 minutes before the scheduled departure.
Moreover, tightened refund norms are set to tackle ticket touts more effectively, ensuring fairer access to tickets for legitimate travellers.
Indian Railways’ revamped contract framework and accompanying measures aim to improve construction quality and operational efficiency. Through these reforms, contractors will face enhanced scrutiny, ensuring that they are not only financially capable but also sufficiently prepared to handle the large-scale projects assigned to them.
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Published on: Mar 25, 2026, 10:03 AM IST

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