Procurement in Railways - Inputs on Solutions

Below are the key issues and root causes as outlined by you on Procurement in Railways. Kindly review them and help identify specific (policy, process, system, controls) solutions that will help address these issues.

We look forward to your inputs!

Procurement in Railways - Root Causes for Issues

1. Lack of professionalism in the working of the Railway
2. There is a nexus between contractors, railway staff & politicians
3. Procurement systems are not computerised yet
4. The officials collude with vendors to their own financial benefits
5. Tenders are opened privately to give the known vendors advantage
6. Bogus companies are created to rake in big money
7. Lack of proper inspection while purchasing
8. Officials raise the purchase rate and the excess amount is dispersed as commission and bribes
9. In many cases contractors who come through political/senior bureaucrat contacts drive things such that junior officers are compelled to accept bribes
10. Most of the payments are still cleared manually through cheques
11. Suppliers provide low or very bad quality goods because they know there is nobody to care for it
12. Lack of set protocols for procurement in Railways
13. Lack of an online tender application system
14. Contractors/suppliers/vendors with political influence get the major contracts
15. Higher level officers manipulate the process, to further their OWN ends and NOT Railways
16. The employee is loyal to his appointing authority and NOT to Indian Railways.

Procurement in Railways - Key Issues

1. The tenders are manipulated
2. Tenders are not opened publicly
3. There is a high level of corruption in procurement
4. Payments are not released without getting a cut
5. There are cartels for some types of work, especially those related to earth work, track laying etc.
6. Orders are given to bogus contractors
7. Sometimes goods are purchased for more than twice-thrice the time of its original value
8. Goods of inferior quality are supplied compared to what is mentioned in the purchase order
9. People operating the purchase department do not have in-depth knowledge of procurement
10. In centralized procurement, the purchasing power is left in the hands of a few individuals
11. In de-centralized procurement, the cost of the purchases becomes high
12. Often, more than required quantity of goods are purchased. more  

View all 78 comments Below 78 comments
The professional approach for procuring material, lacks in Railways. The concerned officer is promoted as per roster and need not qualify to be a purchase officer. They procure for their department only. As in private sector, people are appointed as purchase officers. they procure material in a particular product range. In railways for example, a person can be appointed for Linen for coaches, hospitals and retiring romms etc. Similiarly a person expert in Engineering can do the same for such items and so on. more  
To give me In Central Bord Rail way Member or Dirater S.Afsar Basha. 09849242993 ap more  
Procurement system in Railways is always at fault and is the major cause of huge losses to Railways. Almost all the Railwaymen involved in the Procurement system at all levels are minting money personally by favouring suppliers of thier choice and causing huge losses to the Railways at large. Even after online system started , the deptt bribes had not stopped and now increased much more as the data is to be displayed online . The inspection Authority RITES is the most corrupt organization in the system and charging bribe in percentage of the Invoice value. There is no fear in them and they are openly doing this business . Railways should take some fool proof vigilance system to control this corrupt practices . This step will only make the system better and will help save atleast 25 to 30 % purchase cost . Today , Railway Procurements are of around 80000 crores . You can save atleast 20000 crores by strict vigilance and controlling corruption in purchase . more  
I feel like sending my input on online booking of tickets. To go to New Delhi I have booked two tickets in 3AC for 17/9/15 from Vadodara more then 15 days back, but till date the WT is 3 & 4. It has not changes, which happens very often. It looks that there is some loophole in the system. Please arrange to make zero defect system so that commuters are happy and have fair bargain. more  
I agree that such practices are going on in IR. The system of procurement is to be computerised so that wrong practise does not take place. Openness is required. more  
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