Indian Railways Cuts Vendor Application Fee To Boost Ease Of Doing Business In Rail Sector

In a move to attract more vendors in its supply chain, Indian Railways has introduced a unified vendor approval system. It has also reduced vendor application fee taken for approval with Research Design and Standards Organisation (RDSO), a step towards reform and ease of doing business in the rail sector.

The railways has implemented a unified vendor approval system for single-interface approval of vendors which provides vendors with a complete single-window online process for approval starting from submission of application stage to payments, communication and final approvals.

It also provides vendors with free online access to all the related details, drawings and specifications and tracking of the vendor application status online. It reduces the number of touch points where a vendor interacts with the approving agency.

It has been a continuous endeavour of Indian Railways to associate more and more industry partners with its supply chain and steps have been taken in this direction to enhance ease of doing business for industry.

These steps have not only made processes transparent, efficient and easy but also reduced the cost of doing business for industry.

The railways has taken one more decision in this direction by reducing the vendor application fee that was being taken for applying for approval of vendors with RDSO for identified safety items. Vendor application fee for RDSO approval was Rs 2.5 lakh for other than MSME, and Rs 1.5 lakh for MSME.

It has now been reduced from Rs 2.5 lakh to Rs 15,000, and Rs 1.5 lakh to Rs 10,000. Special provision of lower fee is kept to encourage MSMEs.

The initiative shall further reduce the cost of business for industry and give impetus to ‘Make in India’. It will also benefit the railways by attracting more vendors in its supply chain.