Railway scrap trading to go online

Railway scrap trading to go online

New Delhi: Scrap is no crap for the Railways. In fact, it is a lucrative trade earning from which is going up year every year for the public sector behemoth.

Currently, the scrap is sold through open bidding. As per the Railway Ministry’s plan, the scrap trading will soon be done online to keep mafia out of the scrap selling business.

The e-auction move aims at bringing about transparency in the lucrative scrap trade, said a senior Railway Ministry official.

“Last year, we had earned Rs2,736 crores by selling scrap and our target is to fetch Rs3,005 in the current fiscal," said the official.

“A pilot project was commissioned by the Southern Railway to sell scrap through e-auction. Some lacunae found in the pilot project are being addressed before opting for full-fledged e-auction," said the official.

The software for the e-auction is being manufactured by Centre for Railway Information Systems (CRIS).

Indian Railways is expected to generate 11 lakh tons of scrap in the fiscal 2008-09.

The scrap involves about thousands of condemned wagons, coaches and locomotives.

Currently, the scrap is sold in open auction in the presence of officials concerned but the role of the mafia cannot be ruled out.

“Once the e-auction gets operational, then not only mafia role will be eliminated but there will also be complete transparency in the entire scrap trade," said the official.