GE bags LOA from Indian Railways for Setting Up of Diesel Locomotive Factory at Marhowra

GE bags LOA from Indian Railways for Setting Up of Diesel Locomotive Factory at Marhowra

New Delhi: Indian Railways have taken a giant leap forward in ‘Make in India’ drive by issuing the Letter of Award for setting up of Diesel Locomotive Factory (DLF) at Marhowra, Saran district, Bihar and procurement and maintenance of mainline Diesel Electric Locomotives to M/s GE Global Sourcing India Pvt. Limited today i.e. on 9th November, 2015.

Although the tenders do not come to the Railway Minister, the mantra of decentralization, deregulation and delegation of powers to the cutting edge functionaries initiated by Minister of Railways Shri Suresh Prabhakar Prabhu in a big way helped expedite the awarding of LOA.

The project was announced in the year 2006-07 to select a joint venture partner through International Competitive Bidding for manufacture and supply of modern diesel electric locomotives of 4500 HP and 6000 HP to Indian Railways.

The RFP was issued to two short listed bidders at RFQ stage only on 11.03.2015.

The bid was opened on 01.09.2015 and awarded on 9th November, 2015 to M/s GE Global Sourcing India Pvt. Ltd in a very transparent exercise.

A joint venture company between Ministry of Railways and M/s GE Global Sourcing India Pvt. Ltd will now be incorporated, which shall construct and run the DLF, Marhowra.

Ministry of Railways will hold 26% equity in the JV Company subject to a maximum of Rs.100 crore. Railway have completed acquisition of 226 acres of land for this project and taken possession.

The factory is expected to be established within a period of next three years at a cost of about Rs.1000 crore.

The Company will work on an Assured Off-Take model of 100 locomotives per annum for 10 years. The basic cost of 1000 freight locos will be about Rs.14,656 Crores.

The company will also maintain these locomotives upto the 13th year. Thereafter, Indian Railways will take over the maintenance of these locomotives.

The 4500 HP and 6000 HP locomotives will also operate as 9000 HP and 12000 HP multiple units to provide the necessary economical and environmentally friendly motive power to growing heavy haul freight business of Indian Railways.

This will also support the upcoming Dedicated Freight Corridors. In future, passenger version of these locomotives may also be manufactured.

This factory will lead to direct and indirect employment and development of ancillaries and support industry in the neighboring region which is economically less developed leading to much more investment and related job creation.

These locomotives will be highly fuel efficient which will bring savings in fuel costs on Indian Railways. These locomotives will be equipped with latest technology like electronic fuel injection system, motor driven blowers and compressors, REMMLOT system, noise control to the latest standards.

These hi-tech and environment friendly locomotives shall be compliant to UIC 624 emission norms.

Under PPP arrangement, there is no restriction on upgradation of technology by the Company to bring further benefits to Indian Railways.

Key Attributes:

• The Mantra of Decentralization, Deregulation and Delegation of Powers to the Cutting Edge Functionaries Initiated by Minister of Railways Shri Suresh Prabhakar Prabhu in a Big way Helped Expedite the Awarding of this Milestone LOA.
• The Move Signifies a Giant Leap Forward In ‘Make In India’ Drive.
• A Joint Venture Company between Ministry of Railways and M/S GE Global Sourcing India Pvt. Limited to be Created to Construct and Run the Factory.
• The Factory to Manufacture and Supply Modern Diesel Electric Locomotives of 4500 HP and 6000 HP to Indian Railways.  these Locos in Combination can Operate as 9000 HP and 12000 HP Multiple Units.
• 1000 Locos to be Manufactured in a Period of Ten Years.
• The Basic Cost of 1000 Freight Locos will be About Rs.14,656 crores.
• These Modern Powerful Locos will be Useful for Growing Heavy Haul Freight Operations and will also Support the Mega Freight Operations for the Upcoming Dedicted Freight Corridors.
• This Factory to Lead to Employment and the Development of Ancillaries and Support Industry in the Economically Less Developed Neighboring Region.
• This Project will Usher in New Technologies into the Indian Industry at Large Through High Paced Indigenization within first two to three Years of Commencing Production.