New Delhi, Jan 31 (KNN) To encourage micro, small and medium enterprises (MSMEs) to apply as supply chain vendors with the Indian Railways, one of country’s biggest employer has reduced its vendor application fee from Rs 2.5 lakh to Rs 15,000 for identified safety items.

This drop in fee is marked at 93 per cent, while for businesses apart from MSMEs the fee is slashed from Rs 2.5 lakh to Rs 15,000 marking the drop at 94 per cent.

Railways’ Research Designs & Standards Organisation (RDSO) is the department which looks after the approval of vendors. 

The Ministry of Indian Railways said this decision comes as an effort to bring ease in doing business as lowering the fee will reduce cost and boost domestic manufacturing, simultaneously   benefiting Railways by accelerating its supply chain. 

It seems that the government is also considering to integrate all procurement made by Railways to the MSME-dominated public procurement portal Government eMarketplace.