Alstom eyes a pie

French company Alstom, which has bagged a contract worth Rs 1,471 crore to design, manufacture and commission coaches for the Chennai metro rail, is now looking at the Hyderabad project.

The company is also a joint venture partner of L&T in the Chennai metro contract, but the relationship is confined only to rail track works, according to Vivek B Gadgil, chief executive & managing director of L&T Hyderabad Metro Rail.

L&T, for now, is keeping its options open on the operations and maintenance (O&M) partner for the Hyderabad metro project.

Alstom on its part is in advanced stages of negotiations with the Andhra Pradesh government to move the location of its proposed coach manufacturing plant to Nellore district bordering Tamil Nadu. This comes on the back of incentives and other support offered by the Andhra government in return for locating its coach factory in the state.

Any company that sets up a manufacturing facility will have a competitive advantage over others since shipping them into the country from outside will double the cost, according to a Hyderabad metro rail project official.

Alstom followed Canadian company Bombardier, which has set up a coach facility in Gujarat.

“We will offer similar incentives and support to whoever comes to set up metro rail manufacturing operations in the state,” a senior government official said. Earmarking of land to build a dedicated railway track to move the coaches is under process, according to government sources.

L&T Metro Rail (Hyderabad) chairman Y M Deosthalee said they would select the operations and maintenance partner in the next 2-3 months.

Responding to a question, Gadgil said they need to consider technologies and other parameters before taking a call.