5 firms in fray to bag Rs 5,000 cr project to make 200 high-power locos for Railways

Image
IANS New Delhi
Last Updated : Mar 19 2018 | 1:20 PM IST

Five leading global loco makers have joined the bidding in Indian Railways Rs 5,000 crore tender for the manufacture of 200 high horse power electric locomotives to be pressed into service for heavy haulage in the Western Dedicated Freight Corridor.

Railways require 200 electric locos with 9,000 horse power (HP) each to haul double-stack containers in the upcoming 1,534 km long Western Dedicated Freight Corridor (DFC) from Dadri to Mumbai, passing through Delhi, Haryana, Rajasthan, Gujarat and Maharashtra.

According to the tender conditions, the selected manufacturer will make 190 locos at the Indian Railways' Chittaranjan Locomotive Works facility in Asansol, with transfer of technology provision and import of only 10 engines. The company will also set up a maintenance depot at Rewari.

Showing interest in the project, five international players -- Siemens, Bombardier, Alstom, BHEL-EMD and Toshiba-CRRC -- have submitted applications on March 15, the last date for submission of pre-qualification bids.

"These companies will submit their price bid by the end of April and the awarding the contract is expected by December this year," said a senior Railway Ministry official.

The Railways had floated the global tender for high power locomotives after revising the loan conditions with the Japan International Cooperation Agency (JICA) as the Western DFC is fully funded by Japan.

Procurement of locos for Western DFC had to be from Japanese companies, as per the earlier agreement and, accordingly, the Railways had floated the tender two years back inviting Japanese companies for the project.

However, the bidding process got stuck on the pricing front as the Japanese companies quoted Rs 50 crore per locomotive which was considered too high and the Railways sought reduction by almost half.

While the Japanese consortium did not agree to reduce the price as desired by Railways, a fresh global tender was floated after renegotiating and suitably revising the loan conditions.

With five global players in the fray, the Railways is expecting to get a competitive price this time.

The 3,373 km long DFC, a flagship project of the Railways, aims to augment rail transport capacity to meet the growing requirement of movement of goods by segregating freight from passenger traffic.

The Western DFC (1,534 km) will be from Jawaharlal Nehru Port (JNPT) in Mumbai to Tughlakabad and Dadri near Delhi, and would cater largely to the container transport requirements between the existing and emerging ports in Maharashtra and Gujarat and the northern hinterland.

The Eastern DFC (1,839 km) will be from Ludhiana in Punjab to Dankuni near Kolkata -- to be extended in future to serve the new deep sea port proposed in the Kolkata area, and will largely serve coal and steel traffic.

(Arun Kumar Das is a senior Delhi-based freelance journalist. He can be contacted at akdas2005@gmail.com)

--IANS

arundas/sac

Disclaimer: No Business Standard Journalist was involved in creation of this content

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Mar 19 2018 | 1:14 PM IST

Next Story