Green signal for two big-ticket FDI proposals in Railways

The RFP containing financial bidding documents for both the plants are ready and the shortlisted bidders have been intimated

In line with Prime Minister Narendra Modi's "Make in India" campaign, Railway Minister Suresh Prabhu has finally given green signal to the two much awaited big-ticket FDI proposals for setting up diesel and electric locomotive plants in Bihar at a cost of Rs 2,400 crore (Rs 24 billion).

Ending the suspense over the fate of Madhepura electric locomotive plant and Marhora diesel locomotive plant, Railways has finalised the financial bidding for the high-value joint venture projects after considerable delays, re-thinking and prolonged due diligence amid repeated revision of bidding documents.

The Request for Proposals (RFP) containing financial bidding documents for both the plants are ready and the shortlisted bidders have been intimated the same, said a senior Railway Ministry official.

While four global firms -- Alstom, Siemens, GE and Bombardier -- have been shortlisted for the proposed electric locomotive factory at Madhepura, two multinationals -- GE and EMD - are vying to bag the diesel locomotive plant at Marhora.

The estimated cost of the factories is about Rs 1,200 crore (Rs 12 billion) each. The financial bidding will be opened on August 31 and there will be two pre-bid meetings held in between, the official said.

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 top eight infrastructure projects being monitored by the PMO.

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 4500 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.