Rs. 797 m bus engines and railway wagons under Indian credit line

Thursday, 20 October 2016 00:00 - - {{hitsCtrl.values.hits}}

Govt. to procure 163 Ashok Leyland engine kits; 20 carrier wagons and 30 fuel tanks for railways

Sri Lanka’s Transport Ministry is to order 163 new engine kits from Ashok Leyland along with 20 carrier wagons and 30 fuel tank wagons to refurbish the railway system at an estimated cost of $ 5.5 million or Rs. 797 million under an Indian Line of Credit.

The proposals, which received Cabinet approval this week, were made by Transport and Civil Aviation Minister Nimal Siripala de Silva. According to the Cabinet paper, each of the engine kits from Ashok Leyland will cost $ 11,550.

The Cabinet paper noted that even though it was initially proposed to also procure TATA engine kits such an effort was rejected because it was deemed too costly and would be technically difficult as each bus would have individual requirements. Since 67% of the Sri Lanka Transport Board (SLTB) buses are Ashok Leyland it had been decided to purchase a larger number of their kits.

In the second order Texmaco Rail and Engineering of India has been selected for the supply of 20 Container Carrier wagons with five units of brake system components for $ 1.69 million, which includes a 0.2% charge as local agent commission. Thirty fuel tank wagons with seven units of brake system components at the total FOB value of $ 2.75 million have been ordered from the same company. A second payment of 0.2% would also be given to the local agent as commission from this deal. Freight charges would also be added to the cost, noted the Cabinet paper.