The Director General (Technology) of the Ministry of Transport has informed the General Manager of Railways to suspend the carriage repair project which was run by the Thanthri Company with huge profit for the Railway Department from December 31 this year.
Tkanthri Company, a wholly owned local business, completely overhauled 200 railway carriages at a cost of 12 million rupees per carriage, and has contracted for another 100 railway carriages.
But while those 50 carriages were fully repaired, the company requested to increase the price given for the carriage repair due to the increase in the cost of production due to the Covid-19 epidemic and the rise of the dollar.
Considering that request, the cabinet paper submitted under No. MT/112/2022 dated 20.12.2022 by the Minister of Transport, Highways and Mass Media Dr. Bandula Gunawardena to increase the amount paid by 9 rupees for the complete repair of one carriage has received cabinet approval.
The Finance Minister, President Ranil Wickremesinghe, has informed about the approval of the request in the reference number PFD/PMD/CM/2022/TRA/03/362 dated 14.01.2023.
At present, according to the prices of the world market, if a 3rd class railway carriage is imported from India, a carriage costs 162 million rupees (one carriage with shipping charges and customs charges is about 180 million rupees) and if the same carriage is procured from China, the value of a carriage is Rs. About 233 million.
Thus, the Tantri Company completely repairs a train carriage that normally costs around 200 million rupees for 21 million rupees. A full responsibility period of two years was also given for that.
It is reported that the Ministry of Transport has informed the Department of Railways that this decision will be taken due to the limited allocations received.
The employees say that this decision is the result of corrupt officials trying to get high profits by bringing carriages from India or China.