After an inordinate delay, the Railways has given its nod for setting up two FDI-propelled locomotive manufacturing units in Bihar. Railway Minister Suresh Prabhu has given the green signal for one electric locomotive plant at Madhepura and a diesel unit at Marhora, both announced by former Rail Minister lalu Yadav in 2006 envisaging a cost of Rs2,400 crore.
The Centre’s move is also seen against the backdrop of the Assembly polls due in Bihar later this year. The rail’s FDI proposal in Bihar is also part of Prime Minister Narendra Modi’s “Make in India” campaign. In his Rail Budget last month, Prabhu had announced for going ahead with all stalled projects through PPP mode. This is Prabhu’s second major initiative after he presented the Rail Budget, the first being the launch of a mobile application for complaint redressal and management system.
With the Government allowing 100 per cent FDI in the railway sector, setting up of the two locomotive plants in joint venture model is crucial for Railways to give a boost to its infrastructure. The two projects are among the top eight infrastructure projects being monitored by the PMO which will also generate direct and indirect employment to thousands of people in the region.
Four global firms —Alstom, Siemens, GE and Bombardier — have been shortlisted for the proposed Madhepura electric locomotive factory while GE and EMD are looking forward to bag the diesel locomotive plant at Marhora. The proposals of two Chinese companies — CSR and CNR — were rejected as they did not meet the technical criteria.
The shortlisting for the electric loco factory in Madhepura was to be done in September last year but the Cabinet gave its approval only early this year. The long-stalled rail locomotive factories under the PPP mode got delayed due to red-tape and lack of interest in UPA-II. Also, verification of the claims of applicant companies with the countries where they have been operating consumed much time.
A senior Railway Ministry official said that the Request for Proposals (RFP) containing financial bidding documents for both the plants are ready. Ministry officials said financial bidding will be opened in August and there will be two pre-bid meetings in between. The tendering process had begun in 2008 during the UPA-I tenure.
The Madhepura plant will manufacture 800 electric locomotives of 12,000 horse power (HP) over 11 years. While five electric locomotives will be imported, 795 will be manufactured at Madhepura, as per the bidding condition. Marhora plant will produce 4,500 HP and 6,000 HP diesel locomotives using state-of-the-art technology.
In the course of about 10 years after commissioning, the proposed Marhora plant is expected to manufacture about 1,000 diesel-electric locomotives, that is 100 locomotives annually. While 700 diesel locomotives will be equipped with 4,500 horse power (HP), 300 diesel locomotives will be manufactured with 6,000 HP, said the official.