Jupiter Wagons' JV Debarred by Railway Board for Faking Localisation

Kolkata-based Jupiter Wagons’ joint venture (JV) with Slovenian firm Kovis has reportedly been barred by the Railway Board for falsifying localisation. The company allegedly imported brake disc castings that it claimed were being manufactured in one of its factories in India.

According to the Economic Times (ET), JWL Kovis, in a brake disc tender with Modern Coach Factory (MCF), Raebareli, claimed to have used 90% local content. However, the Research Design and Standards Organisation (RDSO), Lucknow — a technical adviser to Indian Railways — later found that these discs were not manufactured in the company’s Jabalpur factory, but rather imported from Slovenia.

In light of the allegations, JWL Kovis has been debarred by the Railway Board for six months for submitting false certificates affirming compliance. The order has been effective since September 20, 2025.

The newspaper cited a government official as saying it was “a clear breach of the code of integrity, with an apparent intent to secure an unfair advantage in the bidding process.”

However, in its submissions to the Centre, JWL Kovis stated it had gained no financial benefit from the false declaration.

Tenders floated by the Modern Coach Factory (MCF) for standardised brake discs were opened in October 2023. JWL Kovis had declared 90% local content in its bid, supported by a Chartered Accountant’s certificate. As its offer was the lowest among technically qualified bids, the company was awarded the purchase order for the brake discs, the official added.

Commenting on the development, JWL Kovis told ET that as “the matter is under sub judice,” it would not be able to provide further information. The company added that it was fully cooperating with the government and Indian Railways officials on the matter and that it was “business as usual” with Indian Railways.

JWL Kovis (India) Private Limited was incorporated in 2019 in Kolkata, West Bengal. The company operates as a 50:50 joint venture between Jupiter Wagons Limited (JWL) and Kovis d.o.o. (Slovenia) to manufacture brake discs for railway rolling stock. In its annual report, JWL stated that its Jabalpur plant manufactures “high-quality brake discs, gearboxes, and axle boxes, integrating Kovis’ global know-how with our scale to serve Indian Railways and global markets.”

JWL shares were trading 1.37% lower at ₹320 at 12:00 PM on the BSE.