Global firms in race for Bihar locomotive factory

Global giants Siemens, Alstom and Bombardier are in the race for setting up of a modern electrical locomotive factory in Madhepura in Bihar with an investment of nearly Rs 1,300 crore.

"The three companies have submitted price bids for a joint venture model to manufacture 80 state-of-the-art locos per year at an estimated cost of Rs 1296 crore", a senior Railway Ministry official confirmed. The bids will be evaluated by the tendering committee and the lowest bidder will be announced by September-end.

While Railways will have 26 per cent equity, the successful bidder will have 74 per cent equity in the JV project. Though General Electric had shown interest in the project at the initial stage, it opted out of the price bid later. This could well turn out to be the first major project under 'Make in India' initiative in the Railways, the successful bidder will manufacture 800 locomotives after getting contract award in Bihar.

While 5 locos will be imported, the rest 795 will be manufactured at Madhepura as part of the project. Maintenance of the locos will also be the responsibility of the company and for this it will set up two maintenance sheds at Nagpur and Sharanpur.

The factory will produce locos with 12,000 horse power required for heavy hauling of goods in a faster speed on the Eastern Dedicated Freight Corridor.

Currently 6000 HP electric locos are operational in the rail network. Factory will come up at 300 acre of land and it will be the responsibility of Railways to acquire the land for the project. While 120 acre is required for setting up of the factory, 155 acres will be utilised for building township as per the project requirement.

"We will pay compensation under the Railways Act and compensation money has been deposited with the state government", said the official. "Till now about 60 acres have been acquired and rest will be in due course. Railways will sign the land lease for 30 years with the bidder company", the official added.