New Delhi, May 25 -- Indian Railways is expected to soon roll out a mega tender worth around Rs.40,000 crore to procure 100,000 freight wagons over the next three to four years, two persons aware of the development said. The proposed tender, expected to be slightly bigger than the previous large wagon procurement exercise undertaken in 2022, could involve an annual procurement of 35,000-40,000 wagons, and the first set of wagon orders will likely be issued in the second quarter (July-September) of the ongoing fiscal year, the first of the two persons cited above said, both of whom spoke on the condition of anonymity. The planned purchase is meant to boost domestic manufacturing and help wagon makers fully utilize their expanded capacity. This follows the Railways' first long-term wagon procurement tender issued in 2022, under which about 100,000 wagons worth around Rs.32,000 crore were to be procured over three years. Some of the wagons under this tender are still being delivered. Industry executives were upbeat about the planned purchases and said they were prepared to meet the Railways' demand for wagons. "The industry is completing orders under the previous Indian Railways wagon tender and fresh orders with longer visibility will allow domestic wagon industry to function at capacity and maintain operations of their production lines," said Sudipta Mukherjee, managing director of Texmaco Rail & Engineering Ltd, which makes, freight wagons, coaches and locomotives. He said that a third (or about 11,000 wagons) of annual wagon procurement by the Railways under its earlier tender was supplied by the Kolkata-based Texmaco, which has the capacity to produce over 15,000 wagons annually. Jupiter Wagons Ltd managing director Vivek Lohia told Mint the company was ready to meet requirements of wagons by Indian Railways and hoped that a tender for around 35,000 wagons may be issued soon this year. Queries emailed to Indian Railways remained unanswered till press time. The national transporter is currently in talks with manufacturers to assess their ability to supply wagons. Once this consultation is over, it will float a tender, likely in phases. For the current financial year, the first annual procurement plan is expected to cover around 35,000-40,000 wagons, similar to what the industry supplied under the earlier tender, said the second person cited earlier. Based on the industry's performance over this initial tender, a longer procurement plan could be unveiled later this year, the official said, adding that the assessment of wagon requirements is a continuous process and that orders will be placed as needed. "Four years ago, Indian Railways confidently ordered nearly 90,000 new wagons. Today, as those deliveries near completion, Railways' freight sector is stuck with a sluggish 3% annual growth in traffic volume and revenue, sharply reducing the need for fleet expansion. However, starving private-sector wagon manufacturers of fresh orders is also not desirable. It threatens industrial capacity, damages employment, and compromises the routine replacement of condemned stock. There is also a political tightrope to walk," said Sudhanshu Mani, former general manager at Indian Railways and architect of the Vande Bharat Express....