Indian Railways bid to modernise itself
India

Indian Railways bid to modernise itself

GE, Alstom win $5.6-billion contracts from Indian Railways

In a bid to mordernise railways, General Electric (GE) and Alstom were awarded contracts worth $5.6-billion to supply new locomotives to railways.

Railways spokesman Anil Saxena said that Alstom would supply 800-electric locomotives as well as build a factory in Bihar.

GE would provide 1000 diesel locomotives for the next 11 years as well as invest $200 million in plant and maintenance sheds.

Timeline

8 Mar 2015: Prabhu gives FDI nod for locomotive plants

Railway Minister Suresh Prabhu gave his nod to two big FDI proposals for setting up diesel and electric locomotive plants in Bihar.

Alstom, Siemens, GE and Bombardier were shortlisted for the electric locomotive factory at Madhepura.

A senior railway official had said that the financial bidding would open on August 31.

These projects were two of the eight infrastructure projects being monitored by PMO.

Fact: Lalu had similar plans for Bihar

In 2008, Lalu Prasad Yadav, the then Railway Minister, had announced plans to establish locomotive factory in Bihar but the project was stuck in red tape and government approvals, and never went ahead.

25 Jul 2015: Prabhu seeks land from Nitish for locomotive projects

Prabhu seeks land from Nitish for locomotive projects

In a high level meeting, Suresh Prabhu told Bihar CM Nitish Kumar that railways needed about 1116 acres of land for the electric locomotive factory at Madhepura.

They needed at least 300 acres but could acquire only 77 acres.

227 acres of land was also required for the diesel locomotive factory at Marhaura but railways had acquired 92 acres of land.

1 Sep 2015: Alstom emerges as lowest bidder in locomotive project

French company Alstom had emerged as the lowest bidder for the production of electric locomotives in Madhepura, Bihar.

The bid was Rs.30 crore each, making it a Rs.24000 crore contract over 10 years.

The factory that would be set up in Madhepura would cost Rs.4000-5000 crore.

This project was the government's bid to create investment in Bihar ahead of elections.

1 Sep 2015: GE, EMD shortlisted for Marhowra factory

The Railway ministry opened the financial bids received from GE and Electro-Motive Diesel (EMD) for the Rs.22000 crore diesel locomotive factory at Marhowra in Bihar.

A senior official had said that ministry would evaluate the bids to identify the lowest bidder and then award the contract.

The contract includes supply of 700 diesel locos of 4500 HP and 300 locos of 6000 HP.

10 Nov 2015: GE, Alstom win $5.6-billion contracts from Indian Railways