Oriental Foundry Secures ₹575 Crore Wagon Manufacturing Contract from Indian Railways

Oriental Foundry Private Limited, a wholly owned subsidiary of Oriental Rail Infrastructure Limited (ORIL), has successfully secured a significant contract from Indian Railways. The contract involves the manufacture and supply of 33 rakes of flat multipurpose wagons (FMP) valued at ₹575 crore.

The share price of Oriental Rail Infrastructure advanced by 3.89% on January 28, 2025.

Details of the Contract

Awarding Entity
The Railway Board, representing Indian Railways, has awarded the contract through an e-tender process.

Scope of Work
The contract includes the manufacturing and supply of 33 rakes of flat multipurpose wagons. These wagons are essential for optimising transportation and logistics across Indian Railways’ vast network.

Project Timeline
The execution period for the project is set at 21 months, highlighting Oriental Foundry’s commitment to timely delivery.

Contract Value
The project’s total cost stands at ₹575 crore, reflecting the scale and importance of this order for Oriental Foundry.

Financial Terms

The payment structure is as follows:

• 90% of the total cost will be paid upon the issuance of the inspection certificate by the Research Design and Standards Organisation (RDSO), alongside proof of dispatch and delivery.
• The remaining 10% will be released after the final receipt, inspection, and acceptance of the goods.

Key Highlights

1. Domestic Opportunity
   • The contract has been awarded by a domestic entity, showcasing the trust placed by Indian Railways in local manufacturers.
2. Non-Related Party Transaction
   • ORIL has confirmed that the promoter group has no interest in the entity awarding the contract, and it does not fall under related-party transactions.

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