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         Vender Related Information
            Vender Registration
               VENDOR DEVELOPMENT- An Overview

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Vendor Registration System

Central Railway maintains trade group wise a list of approved suppliers after verifying their credentials. On the firms in the juridiction of C.Rly can apply for registration, other firms will require registration with the railways in whose juridiction they are located. Firms already registered with NSIC should have Valid NSIC Registration Certificate and also to produce their registration with Zonal Railways in whose jurisdiction their workshop/factory is situated along with performance report from said Railways. Firms registered with ICF, RCF, CLW, DLW, RDSO or other Zonal Railways should produce valid registration Certificates from the concerned Zonal Railways or Production units or RDSO.

Hence, registration of firm as approved suppliers is done carefully / rigidly after assessing capacity cum capability of the firms. An application, in the prescribed  format for registration, is required to be submitted by the suppliers while furnishing information like annual turnover, infrastructure availability is solicited.

 Registration of supplier is done for the following category for monitory limits and trade groups based on their financial capacity, capability and available M & P with them.


  Monetary Limit ( capacity of executing the Purchase orders)


More Than Rs. 100 crores and above


Between Rs.10 crores To Rs. 100 crores


Between Rs.1 crores To Rs. 10 crores 


Between Rs. 50 Lakhs To Rs. 1 crores 


Between Rs. 10 Lakhs To Rs. 50 Lakhs 


Up to Rs.10 Lakhs

Firms having registration for supply order valued above Rs. 10 lakhs should be invariably be a manufacturer. 

The firms registered are exempted from payment of Security   Deposit and Earnest Money Deposit.  The registration period is initially for a period of 2 years and thereafter extended based on their performance.

Within the monetary limit prescribed above firm is not required to pay Security Deposit and Earnest Money Deposit. However, a higher value order can be considered provided firm satisfies the capacity cum capability and submits Security Deposit for the excess value as is done in case of unregistered firms. For registering to get  supply orders more Rs.25,000/- firm should invariably be a manufacturer or his authorized agent. The initial registration is given for one-year period and subsequently based on their performance it is renewed for a period of 3 years.


Railway also issues a developmental order to the extent of maximum 20% of tender quantity to the firms interested in developing the items and possess adequate infrastructure. Some of the benefits available to the developing firms are:

a)No liquidated damages are charged

b)Extension of delivery period is granted on liberal basis.

c)Risk purchase can be waived if firm has made a sincere attempt to develop items.

d)Price escalation may be considered due to increase in Sales Tax, Duty, raw material.


For the sake of convenience of development and purchase the items are divided into various Vendor Trade Group, a booklet for which is available. The vendors are advise to go through IRS conditions of contract and special terms & conditions applicable from time to time. These can be obtained from Secy. to COS Ph.022-22697202, Fax No.022 22634313.


Railway adopts following modes of tendering for procurement.


1.Bulletin tender A Bulletin is published every week for items required.

2.Limited tender Enquiries issues only to selective proven sources.

3.Advertised tender Advertised in leading National & Regional News Papers.

4.PAC purchases i.e. Single Tender Where only one source exists.


The details of Advertised tenders are also included in the weekly bulletin for the vide publicity.

Railway is open to the problems faced by the vendors and there is a continuous effort to improve systems. However, for the information of prospective vendors it is clarified that:

Numbers of disputes regarding interpretation of contract etc. are minimum on Railways, considering the number of contracts entered.

Payment is relatively fastest.

Transparency in procurement is always in sight.


Source : Central Railway / Indian Railways Portal CMS Team Last Reviewed : 12-06-2023  

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