Suspense looms over JSPL's rail supply to Iran

The deal dating back to 2013 is yet to fructify due to technical reasons

Suspense prevailed over the reports that Jindal Steel and Power Limited (JSPL) had bagged a portion of order to supply rails to Iran for a major railroad expansion plan.

The order to supply 300,000 Tonnes of rail to Iran was bagged by the state-owned Steel Authority of India Limited (SAIL) in 2013. The Iranian authorities had demanded 18 meters of rail thats SAIL was in fact not manufacturing. Its only entity manufacturing rails, Bhilai Steel Plant (BSP), had imported the required equipment but it could not be installed because of some technical reasons.

Reports circulating in the market said that JSPL had managed to get a part of order that was awarded to SAIL. Following the delay on the part of SAIL, half of the order, which amounted to 150,000 tonnes, had been given to the JSPL, the report added. SAIL is however concentrating on the Indian Railway orders as it is the sole supplier.

JSPL had neither denied nor confirmed the reports. The company spokesperson refused to respond to an email sent to known the status of the report as JSPL had been exercising to get the order.

Meanwhile, a senior official of the SAIL following the development told Business Standard that there was nothing on paper. “We had cross-checked with the authorities concerned and they had denied that JSPL had been awarded the contract to supply,” the official said. As of now, JSPL had nothing in writing to supply rails to Iran.