The Rail Chamber acts as the unified voice for India’s railway industrial base. We translate the ground-level challenges of OEMs, component suppliers, and MSMEs into formal policy representations aimed at improving the Ease of Doing Business and fostering a robust Atmanirbhar ecosystem.
1. Key Areas of Current Representation
Our recent memorandums and advocacy efforts focus on resolving structural bottlenecks that hinder the growth of domestic manufacturers:
A. For Global & Domestic OEMs
- Predictability of Tenders: Representing the need for a three-year rolling procurement calendar for Rolling Stock to allow OEMs to optimize production and manage long-lead raw material imports.
- Price Variation Clauses (PVC): Advocating for more dynamic PVC formulas that accurately reflect the volatility in global commodity prices (steel, copper, and aluminum) and specialized electronics.
- Standardization of Contracts: Pushing for the adoption of internationally recognized arbitration and liability clauses in high-value locomotive and coach contracts.
B. For Component & System Suppliers
- Approval Cycle Reduction: Submitting proposals to RDSO for Digital Twin testing and "Type Approval" recognition for products already certified by globally reputed labs, reducing the testing lead time from years to months.
- Inverted Duty Structure: Coordinating with the Ministry of Finance and Railways to correct anomalies where raw materials are taxed at higher GST rates than finished railway components.
C. For MSMEs & Startups
- Timely Payment Mechanisms: Advocating for the strict implementation of the TReDS platform across all Zonal Railways and Production Units to ensure MSME cash flows remain healthy.
- Relaxation of "Past Experience" Criteria: Representing the need for "Trial Orders" based on technical capability rather than prior supply history to encourage new entrants in specialized signaling and electronics.
2. Ongoing Advocacy Initiatives
We are currently engaged in high-level consultations regarding:
- The "Vande Bharat" Supply Chain: Ensuring local tier-2 suppliers are prioritized in the upcoming sleeper and metro trainset projects.
- KAVACH Implementation: Addressing supply chain constraints for semiconductors and specialized sensors required for the rapid rollout of the national ATP system.
- Green Rail Incentives: Proposing tax holidays and R&D grants for companies investing in Hydrogen propulsion and Li-ion battery technology for shunting locos.
3. Impact Tracker
The Rail Chamber doesn't just submit papers; we track outcomes.
Recent Success: Our representation on Simplifying Vendor Registration led to the recent "Cross-Approval" policy where approval from one Production Unit (like ICF) is now recognized by others (like RCF/MCF).
Members can download the full text of our formal letters, white papers, and minutes of meetings with the Railway Board in the Member Dashboard.