September 02, 2015

Indian Railways opens locomotive plant bids

Written by  Raghav Thakur
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Indian Railways opens locomotive plant bids Paul Bigland

ALSTOM and GE Transportation have emerged as lowest-price bidders for contracts with a combined value of around Rs 23bn ($US 348m) to establish two new locomotive assembly plants in the Indian state of Bihar.

Indian Railways opened bids this week for the electric locomotive factory at Madhepura and the diesel locomotive at Marhoura.

"Contracts to build the two factories will be awarded this year after all the proposals are scrutinised by a departmental committee," IR officials said.

Alstom, Bombardier, and Siemens submitted bids for the Madhepura factory, while GE and EMD vied for the Marhoura contract.

Both projects will be implemented as PPPs, with the IR equity share being placed at 26% of the project cost. The Madhepura factory is estimated to cost Rs 13bn, while Marhoura will cost Rs 10bn. Production must begin at both plants within four years of the contract being signed.

According to the terms of agreement, the Marhoura factory will supply IR with 700 3.35MW and 300 4.47MW locomotives over an 11-year period. IR will purchase the initial 100 units outright.

Madhepura will build at least 800 8.9MW electric locomotives over 11 years and the winning bidder will also be responsible for maintaining 500 of these units for five years. Only the first five units will be purchased outright by IR.
In addition to the locomotives for IR, both plants will be permitted to manufacture locomotives for export to any other country.

IR will provide land for both facilities and this will be handed over to the winning bidder within 90 days of contract signing.

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