Steel Authority of India (SAIL) and leading private steel manufacturers have secured steel supply contracts totalling Rs 1,586.39 crore from Indian Railways.

Private steel manufacturers include Tata Steel, ArcelorMittal Nippon Steel (AM/NS), Jindal Steel and Power Limited (JSPL) and Jindal Stainless Limited (JSL).

These contracts were awarded through two separate tenders: one for the procurement of mild/corten steel sheets/plates/coils in July 2023, and the other for purchasing stainless steel sheets and plates in February 2024. Both the tenders were only finalised earlier this month, reports ET.

SAIL, the country’s biggest state-owned steel producer, has secured the majority share in both the tenders.

SAIL will be providing 1.05 lakh metric tonnes (MT) of steel valued at Rs 671.27 crore, along with an additional 16,356 MT of stainless steel worth Rs 217.90 crore.

Following closely, Tata Steel has secured the second-largest supply quantity, with 52,753 MT of steel to be procured by the Indian Railways for Rs 333.48 crore.

The procured steel will be utilised in the fabrication of railway wagons, coaches, and various infrastructure such as foot over bridges.

Notably, Indian Railways has recently increased its locomotive production target for fiscal year 2025 by 27 per cent to 1,500 units and aims to maintain this annual production target until fiscal year 2027.

Indian Railways operates eight production units across the country, manufacturing wheels, axles, locomotives, and coaches. The railway authority had set a goal to end fiscal year 2023-24 with the production of 1,180 new locomotives.