Business · Economy · 6 hrs ago
Railways orders end to brand-specific procurement tender rules
The Railway Board has told railway zones and production units across India to remove restrictive conditions from procurement tenders.
It says tenders should avoid naming specific brands, trade names or trademarks wherever possible.
Where products with Bureau of Indian Standards marks are available, procurement must be limited to those products.
The order follows a vigilance investigation that found brand-linked tender rules could create monopolies.
Railway procurement problems involving winter jackets and reflective tapes used in raincoats were flagged in 2022.
The change matters because the railways bought goods worth ₹75,793 crore in 2023-24, and local units handled nearly 73% of those purchases.
Existing item descriptions and specifications will also be reviewed and changed to use generic, non-restrictive terms.
The Railway Board has directed railway zones and production units to remove restrictive conditions from procurement tenders.
The directive says tenders should avoid brand names, trade names and trademarks wherever feasible.
A vigilance investigation found that brand-linked tender practices were creating monopolistic situations.
Where products with Bureau of Indian Standards marks are available, procurement must be restricted to those products.
The directive also orders a review of existing item descriptions and specifications to replace brand-specific requirements with generic terms.
- Who
- The Railway Board issued the directive to railway zones and production units.
- What
- It ordered them to remove restrictive tender conditions and avoid brand-specific references wherever feasible.
- When
- The article was published on October 12, 2026. The directive's issue date is not stated.
- Where
- India’s railway procurement system.
- Why
- A vigilance investigation found that brand-linked tender practices were creating monopolistic situations.
This story does not have two clearly opposing sides.
Instances of lapses in procurement of winter jackets and retro-reflective tapes used in raincoats were flagged.
The Economic Times reported that the Railway Board had directed zones and production units to revise procurement tender rules.
- Goods procured in 2023-24
- ₹75,793 crore, excluding track items and supplies bundled with works contracts
- Share handled by zones and production units
- Nearly 73% of purchases
- Railway depots
- 306 depots stock more than 242,000 types of items
- Railway capital expenditure in 2026-27
- ₹2.93 lakh crore, including ₹12,000 crore from extra-budgetary resources
What people are saying
Tenders must not favour any brand where BIS norms exist.





