Question : OUTSOURCING OF USFD MACHINES

(a) the year when ultrasonic flaw detection outsourcing(USFD) was started;

(b) the details of Indian/ Foreign firm doing the Ultrasonic Flaw Detectors (USFD) outsourcing work;

(c) the reason for inviting open tender when only one firm is doing work;

(d) the steps taken to bring other firms, in order to increase the area of competition in the interest of the Railways;

(e) whether even now, after change of guidelines also, only single firm can qualify the tender conditions; and

(f) if so, the reasons therefor?

MINISTER OF STATE IN THE MINISTRY OF RAILWAYS(SHRI R. VELU)

(a) to (f): A statement is attached.


STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (f) OF UNSTARRED QUESTION NO.3589 BY SHRI A.K. MOORTHY TO BE ANSWERED IN LOK SABHA ON 17.04.2008 REGARDING OUTSOURCING OF USFD MACHINES.

(a): In the year 2003-04, outsourcing of Ultrasonic Flaw Detection (USFD) testing of track was started.

(b): Presently only one firm viz. M/s Sperry Rail International, UK, through their Indian agent M/s Khyati Nilum Associates Pvt. Ltd, New Delhi, is carrying out the work of USFD testing of track on service contract.

(c): The reason for inviting open tender is to permit even other interested parties capable of USFD testing of rails and meeting the eligibility criteria can also participate in the tender.

(d): The eligibility criteria is revised to encourage more firms to participate in tender of USFD testing of track on service contract.

(e) & (f): The intention of revising the eligibility criteria is to bring more vendors for USFD testing to prevent the monopolistic situation. It is not possible to comment whether one firm or more than one firm can qualify as this will depend upon the firm quoting the tender invited by the Zonal Railways.