Diesel Locomotive Factory (DLF) at Marhowra, Saran District, Bihar

[Hindustani78]

Ministry of Railways
09-November, 2015 18:52 IST

Indian Railways Issues Letter of Award (L.O.A.) for Setting Up of Diesel Locomotive Factory (DLF) at Marhowra, Saran District, Bihar to USA-Based Company M/S GE Global Sourcing India Pvt. Limited

The Mantra of Decentralization, Deregulation and Delegation of Powers to the Cutting Edge Functionaries Initiated by Minister of Railways Shri Suresh Prabhakar Prabhu in a Big way Helped Expedite the Awarding of this Milestone L.O.A.

The Move Signifies a Giant Leap Forward In ‘Make In India’ Drive


A Joint Venture Company between Ministry of Railways and M/S GE Global Sourcing India Pvt. Limited to be Created to Construct and Run the Factory


The Factory to Manufacture and Supply Modern Diesel Electric Locomotives of 4500 HP and 6000 HP to Indian Railways. these Locos in Combination can Operate as 9000 HP and 12000 HP Multiple Units


1000 Locos to be Manufactured in a Period of Ten Years


The Basic Cost of 1000 Freight Locos will be About Rs.14,656 crores.


These Modern Powerful Locos will be Useful for Growing Heavy Haul Freight Operations and will also Support the Mega Freight Operations for the Upcoming Dedicted Freight Corridors


This Factory to Lead to Employment and the Development of Ancillaries and Support Industry in the Economically Less Developed Neighboring Region


This Project will Usher in New Technologies into the Indian Industry at Large Through High Paced Indigenization within first two to three Years of Commencing Production.


Indian Railways have taken a giant leap forward in ‘Make in India’ drive by issuing the Letter of Award for setting up of Diesel Locomotive Factory (DLF) at Marhowra, Saran district, Bihar and procurement and maintenance of mainline Diesel Electric Locomotives to M/s GE Global Sourcing India Pvt. Limited today i.e. on 9th November, 2015.

Although the tenders do not come to the Railway Minister, the mantra of decentralization, deregulation and delegation of powers to the cutting edge functionaries initiated by Minister of Railways Shri Suresh Prabhakar Prabhu in a big way helped expedite the awarding of LOA. The project was announced in the year 2006-07 to select a joint venture partner through International Competitive Bidding for manufacture and supply of modern diesel electric locomotives of 4500 HP and 6000 HP to Indian Railways. The RFP was issued to two short listed bidders at RFQ stage only on 11.03.2015. The bid was opened on 01.09.2015 and awarded on 9th November, 2015 to M/s GE Global Sourcing India Pvt. Ltd in a very transparent exercise. A joint venture company between Ministry of Railways and M/s GE Global Sourcing India Pvt. Ltd will now be incorporated, which shall construct and run the DLF, Marhowra. Ministry of Railways will hold 26% equity in the JV Company subject to a maximum of Rs.100 crore. Railway have completed acquisition of 226 acres of land for this project and taken possession. The factory is expected to be established within a period of next three years at a cost of about Rs.1000 crore.

The Company will work on an Assured Off-Take model of 100 locomotives per annum for 10 years. The basic cost of 1000 freight locos will be about Rs.14,656 Crores. The company will also maintain these locomotives upto the 13th year. Thereafter, Indian Railways will take over the maintenance of these locomotives. The 4500 HP and 6000 HP locomotives will also operate as 9000 HP and 12000 HP multiple units to provide the necessary economical and environmentally friendly motive power to growing heavy haul freight business of Indian Railways. This will also support the upcoming Dedicated Freight Corridors. In future, passenger version of these locomotives may also be manufactured. This factory will lead to direct and indirect employment and development of ancillaries and support industry in the neighboring region which is economically less developed leading to much more investment and related job creation. These locomotives will be highly fuel efficient which will bring savings in fuel costs on Indian Railways. These locomotives will be equipped with latest technology like electronic fuel injection system, motor driven blowers and compressors, REMMLOT system, noise control to the latest standards. These hi-tech and environment friendly locomotives shall be compliant to UIC 624 emission norms. Under PPP arrangement, there is no restriction on upgradation of technology by the Company to bring further benefits to Indian Railways.


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[Hindustani78]

Ministry of Railways
10-November, 2015 18:08 IST

Indian Railways Issues Letter of Award (L.O.A) for Setting up Electric Locomotive Factory at Madhepura, Bihar to M/S Alstom Manufacturing India Limited.
The Mantra of Decentralization, Deregulation and Delegation of Powers to the Cutting Edge Functionaries Initiated by Minister of Railways Shri Suresh Prabhakar Prabhu in a Big way Helped Expedite the Awarding of LOA.


The Project Would Ensure Indigenization Making it a True Make in India Proposition

A Joint Venture Company Between Ministry of Railways and M/S Alstom Manufacturing India Limited will be Created to Construct and Operate the Factory


The Factory Would Manufacture and Supply Modern Electric Locomotives of High Horse Power Namely 12000 Hp


Total Number of 800 Electric Locos to be Procured in a Period of 11 Years


The Basic Cost of 800 Locos will be About 19000 Crore

These Modern Powerful Locos will be Useful for Heavy Haul Freight Operations and Mega Freight Operations in the Eastern Dedicated Freight Corridor and Pan India Operation


The Factory Would Lead to Substantial Development of Ancillary Manufacturing Units, Generation of Direct and Indirect Employment and Substantial Development in the Region

The Fair, Transparent and Competitive Bidding Process Adopted in Selecting the JV Partner Receives Wide-Spread Appreciation by All Stakeholders




Indian Railways has issued the Letter of Award (L.O.A.) for setting up of Electric Locomotive Factory (ELF) at Madhepura in Bihar to a France-based company M/s Alstom Manufacturing India Limited. This new factory will supply 800 high horse power (12000 hp) electric locomotive over a period of 11 years.

The project would bring in an investment of Rs 1300 crore for setting of the factory and also the maintenance facilities. It would also entail procurement of 800 High horse Power (12000 HP) locomotives costing about Rs. 19,000 crore (exclusive of Taxes and Duties).

Although the tenders do not come to the Railway Minister, the mantra of decentralization, deregulation and delegation of powers to the cutting edge functionaries initiated by Minister of Railways Shri Suresh Prabhakar Prabhu in a big way helped expedite the awarding of LOA.

A joint venture company between Ministry of Railways and M/s Alstom Manufacturing India Limited will now be incorporated and agreement between the two will be signed within the next 30 days. This JV shall construct and run ELF Madhepura. Ministry of Railway will hold 26 per cent equity in JV Company subject to a maximum of Rs.100 crore. The proto-type locomotives are to be delivered in the coming two years and the factory is to be set up within a period of three years from signing of the Agreement.

The project requires only five electric locomotives to be imported. The balance 795 locomotives are to be manufactured in India. The contract provides suitable economic drivers which would ensure complete indigenization of the manufacturing which in turn will lead to substantial development of ancillary manufacturing units and indigenization of the locomotives making it a true ‘Make in India’ proposition. The project would also lead to development of the region where the factory would be set up and also those where the maintenance facilities would be set up. In sum, the project would bring in substantial development in these areas and also lead to generation of direct and indirect employment.

The project would also enable Indian Railways to have a fleet of locomotives equipped with state of the art propulsion technology. These High Horse Power (12000 HP) locomotives would be a quantum leap over the existing 6000 HP locomotives used for freight operations. These locomotives are planned for use in the Eastern DFC and also for Pan India operations for hauling freight trains of 6000 Tonnes at 100 kmph and improve the average speed of such trains to around 50-60 kmph over the existing 25-30 kmph. The quantum jump in the operating parameters would lead to substantial increase in the throughput and also enhance line capacity. These locomotives, equipped with state of art IGBT, based propulsion technology, would lead to considerable savings in energy consumption due to use of regenerative braking.

Earlier Indian Railways had issued L.O.A. for setting up of Diesel Locomotive Factor (DLF) to M/s GE Global Sourcing India Pvt. Ltd. for manufacturing and supply of 1000 Diesel locos at about Rs.14,656 crores in a period of ten years with establishment of factory costing about Rs.1000 crores.

These two big ticket projects at Marhowra and Madhepura will usher in inflow of substantial FDI in Indian rail sector.

The entire bid process has been conducted in a fair, transparent and competitive manner which has drawn international attention. The simplified bidding process adopted for a complex project of this magnitude has also been appreciated by all stakeholders. The efforts made by Ministry of Railways in this direction has received wide appreciation.

BACKGROUND INFORMATION : -

The Cabinet had approved setting up of Electric Locomotive Factory in Madhepura (Bihar) in Feb.’ 2007. The factory is to be set up through Joint Venture (JV) Route with a 26% equity of the Ministry of Railways in the JV.

The Joint Venture Partner was to be selected through an international competitive bidding process. Following which the selected partner was to set up a manufacturing facility at Madhepura (Bihar) for manufacturing electric locomotives. Ministry of Railways would procure 800 High horse Power (12000 HP) electric locomotives over a period of eleven years from the aforesaid facility. The Joint Venture Company would also be required to undertake maintenance of 500 electric locomotives at two locations for a specified period.

For fulfillment of the above objective, Ministry of Railways decided to conduct a two stage bidding process comprising of Request For Qualification (RFQ) for short-listing of bidders and Request For Proposal (RFP) for obtaining financial bid for selection of a suitable JV partner through International Competitive Bidding. The standard RFQ and the RFP documents of the Ministry of Finance were used in the process. The Cabinet had approved the bidding documents comprising of Request For Proposal and the Procurement-cum-Maintenance Agreement (PCMA) in Jan.’ 2014.

The Request For Qualification for the present bid was initiated in May, 2013 and the process concluded by way of short-listing of bidders in May, 2014. Following bidders were shortlisted for the project:-

ELF, Madhepura Poject.

(a) Alstom Manufacturing India Ltd.

(b) Bombardier Transportation India Ltd.

(c) GE Global Sourcing Ltd.

(d) Siemens Locomotives, Germany.


The RFP documents were issued to the short-listed bidders inviting financial bids on Feb 27, 2015. Two pre-bid meetings were held during the process and subsequently, the financial bids were received on 31st Aug., 2015.

After detailed evaluation of the bids, Ministry of Railways had declared Alstom Manufacturing India Limited as the selected bidder

The entire bid process has been conducted in a fair, transparent and competitive manner which has drawn international attention. The simplified bidding process adopted for a complex project of this magnitude has also been appreciated by all stakeholders. The efforts made by Ministry of Railways in this direction has received wide appreciation.

 

[Hindustani78]

Ministry of Railways
16-December, 2016 13:19 IST
FDI in Railways

Two locomotive factories at Madhepura (Electric) and Marhowra (Diesel) costing about Rs.2600 crore entailing Foreign Direct Investment (FDI) inflow in Rolling stock manufacturing have already been awarded to Alstom and General Electric (GE) respectively in 2015.

Government is pursuing modernisation and strengthening of rail network and development of rail-related industries through infusion of foreign equity and technology leading to growth in manufacturing and enhancing competitiveness.

This Press Release is based on the information given by the Minister of State for Railways Shri Rajen Gohain in a written reply to a question in Rajya Sabha on 16.12.2016 (Friday).

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