GE, EMD bids opened for Rs 22,000-cr Marhowra loco factory

The government will choose between two American multinational transport giants, GE and Electro-Motive Diesel (EMD), for awarding the country’s first Foreign Direct Investment project in railways, the Rs 22,000-crore diesel locomotive factory at Marhowra in Bihar.

“The ministry today opened the financial bids received from both the companies. These will now be evaluated to identify the lowest bidder and for awarding the contract in a month,” a senior rail ministry official said, refusing to divulge the details.

The ministry had on Monday opened the bids from three other companies – Alstom of France, Canadian multinational Bombardier and Germany’s Siemens – for the other such project, the Rs 20,000-crore electric locomotive factory to be set up at Madhepura in the same state.

A media report claimed Alstom had emerged as the lowest bidder for the Madhepura project. Both plants are estimated at Rs 1,200 crore each. A ministry official said the final cost of the Madhepura contract would also include the cost of supplying 800 locomotives, for around Rs 20 crore each.

The Marhowra contract includes supplying 700 diesel locos of 4,500 HP and 300 locos of 6,000 HP over 11 years. Of these, the initial 100 locos might be imported. “The joint venture company can also export locos after fulfilling the requirement of Indian Railways. The company will also set up maintenance depots for these locomotives at Bhatinda (Punjab) and Gandhidham (Gujarat),” said an official.

Railways minister Suresh Prabhu launched on Tuesday cash card-operated ticket vending machines and two mobile applications for unreserved tickets and management of freight operations.

He also said the ministry’s Centre for Rail Information Systems would soon sign a pact with Indian Space Research Organisation for tracking the rail network to avoid accidents.