RAILWAY CURRENT NEWS

7th Pay Commission News Center

EMPLOYEE NEWS CENTER

STATION MASTERS NEWS

Satyam loses Indian Railways tech contract worth Rs 100 crore

BANGALORE/MUMBAI: Indian Railways has cancelled a locomotive management system (LMS) contract awarded to Satyam Computer Services (now Mahindra Satyam) in January this year, after the company failed to meet the deadline for submitting required financial details and start working on the pilot project. “After non-delivery of the pilot, we served a notice around one and half months ago,” a senior railways official told ET on Tuesday. He requested anonymity because he is not authorised to speak with media about vendors and contracts. While the value of the LMS contract is less than Rs 100 crore, it could help vendors chase similar contracts worth up to Rs 3,000 crore more effectively. Apart from Mahindra Satyam, rivals TCS, Infosys, Wipro and HCL are all aggressively bidding for these contracts. “We have already received three applications , including from Wipro, after we issued a new tender for the same project,” he added. Railways has now invited other vendors including Wipro to bid for the project. Mahindra Satyam had emerged as the lowest bidder for the first in a series of outsourcing contracts worth almost Rs 2,000 crore to be awarded by Indian Railways in January earlier this year. When contacted by ET on Tuesday a Mahindra Satyam spokesman said his company could not produce the audited financial statements for past three years, which led to the cancellation of the contract.

No comments: