The Indian Railways is preparing to issue a massive tender of ₹40,000 crore to acquire 1,00,000 freight wagons over the next 3-4 years, as per The Mint report.
This development aims to enhance the domestic manufacturing sector and ensure the full utilisation of wagon production capacities.
This substantial procurement follows an earlier tender by the Railways in 2022, which covered the acquisition of about 1,00,000 wagons valued at nearly ₹32,000 crore over 3 years.
The upcoming tender is anticipated to be slightly more extensive, with 35,000-40,000 wagons expected to be procured annually.
Texmaco Rail & Engineering Ltd, a prominent player in the manufacture of wagons, has expressed readiness to meet the demands of Railways.
The company, based in Kolkata, supplied about 11,000 wagons annually under previous contracts and has the capacity to produce over 15,000 wagons each year.
Industry actors are optimistic about the upcoming order, considering the demand for sustained production lines and job maintenance vital for the sector.
Manufacturers like Jupiter Wagons Ltd are anticipated to play significant roles following successful consultations with Indian Railways about potential deliveries.
Read More: Indian Railways Approves ₹2,193 Crore Projects for Safety, Capacity Expansion and Network Decongestion!
The procurement not only meets immediate demands but also aligns with Indian Railways' strategic objectives. With record freight shipments of 1,670 million tonnes in FY 2025-26 and an aim to reach 3,000 million tonnes by 2030, scaling up wagon infrastructure is crucial.
The National Rail Plan (NRP) initiated in 2022 intends to double wagon strength by 2030, from an existing 3,00,000 to 6,00,000 wagons, achieving higher freight revenues and increasing modal share in freight transport from approximately 27% to 45%.
The decision by Indian Railways to initiate this sizable tender for 1,00,000 wagons worth ₹40,000 crore underscores a commitment to bolstering domestic manufacturing while aligning with national freight goals. The initiative will significantly influence the sector, impacting both production strategies and employment within the rail and wagon manufacturing industries.
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Published on: May 25, 2026, 10:59 AM IST
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