Miscellaneous - This Day That Age   

dated August 8, 1957: Purchase of rail wagons

The Railway Minister, Mr. Jagjivan Ram, told the Lok Sabha on August 6 that he had stopped placing orders for wagons with a firm because it was found that an officer of the Railway Board on leaving Railway service had joined the firm just before negotiations with the firm in regard to wagons were to be started. It was not desirable, he said, that a Railway Board officer should resign or retire from the Board and join a private firm which was about to start negotiations with the Board for fixing the price of wagons. The Minister was replying to Mr. Feroze Gandhi, who had asked whether the Railway Board did not invite tenders but finalised by negotiation with the firms concerned the price and other contract terms for the manufacture of wagons. He also asked whether officers in the Railway Board, immediately after retirement, joined the firms manufacturing wagons and conducted negotiations with the Board on their behalf. The Minister said the companies capable of manufacturing railway equipment were recommended by the Railway Equipment Committee. It was not that the Railway Board, on its own, negotiated with companies regarding the price of wagons.

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