Ex-Rail Official Slams ‘Price Over Quality’ Culture in Procurement

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Former ICF executive reveals how cheap materials and flawed tendering practices compromise safety, durability, and public trust in Indian Railways

By TRH News Desk

NEW DELHI, August 5, 2025 — A former senior Indian Railways official has sparked a renewed debate on quality versus cost in public procurement after his candid LinkedIn post went viral, exposing deep-rooted flaws in the tendering system during the making of Train-18, India’s first semi-high-speed train.

In his post, Shubhranshu, the former executive—who was closely involved in Train-18’s prototype development at the Integral Coach Factory (ICF) in Chennai—recounted a revealing encounter with Indian manufacturers of rexine and PVC flooring. The manufacturers protested the use of German imports for upholstery and flooring, arguing that Indian firms were capable of producing similar materials if held to higher standards.

The official clarified that the decision to source materials from Germany was not due to a lack of nationalism but because the materials met EN-45545 HL3, a globally accepted fire-retardant standard for rolling stock.

“These are special fire-retardant materials… conforming to EN-45545 HL3, ensuring flame, smoke, and toxin-free combustion,” Shubhranshu wrote, noting the grave safety implications for passengers.

However, he acknowledged the manufacturers’ frustration—that Indian suppliers had never been challenged to meet these standards before.

“You Ask for Cheap, We Give You Cheap”

What followed was the most startling revelation. A supplier presented two samples: one of high-quality rexine sold to state transport corporations (STCs) at ₹175 per square metre, and another, a thinner, fragile version sold to Indian Railways for just ₹40–₹50 per square metre.

“Sir, you in the Railways insist on buying poor quality at the lowest prices… We must cut corners to make even the smallest profit,” the manufacturer reportedly told him.

Ironically, the superior material sold to STCs complied with RDSO specifications—the very same standards used by Indian Railways.

Systemic Rot: Cheap Wins Over Quality

In his scathing critique, the official called out the Stores, Finance, and Technical departments of the Railways for collectively enabling a culture that prioritizes price over value. “The Stores Department expands the vendor list under the garb of pseudo-democratisation. The Finance wing obsesses over price alone. And the Technical departments meekly surrender, ignoring their duty to ensure safe and durable materials,” lamented Shubhranshu.

The result? Repeated procurement of substandard materials, compromising passenger safety, comfort, and long-term costs.

While rexine and flooring were cited as examples, the official warned that such practices are “all-pervasive” across public procurement systems in India. Fly-by-night operators win tenders by underbidding, only to deliver inferior, unsustainable goods.

“This is true of nearly all public procurement systems in the country,” he concluded, calling for a paradigm shift in how quality and accountability are embedded into tendering processes.

The post has sparked a wide-ranging conversation among industry professionals, engineers, and procurement experts, many of whom echoed the need to rethink lowest-bidder policies in critical public infrastructure projects.

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