Railways Issues LOA For Setting Up Diesel Loco Factory In Bihar
09 November, New Delhi
Railways, taking forward Prime Minister Narendra Modi’s ‘Make in India’ initiative, today issued the Letter of Award (LOA) for setting up of Diesel Locomotive Factory (DLF) at Marhowra, in Bihar and procurement and maintenance of mainline diesel electric locomotives to M/s GE Global Sourcing India Pvt Limited.
The company will work on an assured off-take model of 100 locomotives annually for the next 10 years.
The cost of 1000 freight engines would be around Rs 14,656 crore, a official statement said here.
The company would also maintain these locomotives upto the 13th year and thereafter, the Railways would take over the maintenance of these locomotives.
It would also manufacture and supply modern diesel electric locomotives of 4500 HP and 6000 HP. These engines in combination can 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 Railways.
This would also support the upcoming Dedicated Freight Corridors (DFC). The company in future is likely to manufacture the passenger version of these locomotives.
The Diesel Locomotive 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 would be highly fuel efficient that would help savings in fuel costs.
These engines would be equipped with the latest technologies like electronic fuel injection system, motor driven blowers and compressors, REMMLOT system, noise control to the latest standards.
These hi-tech and environment-friendly engines would be in accordance to UIC 624 emission compliance.
Under the PPP arrangement, there was no restriction on upgradation of technology by the company to bring further benefits to the Railways.
According to an official statement, 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 on March 11.
The bid was opened on September 1, 2015 and tender awarded on November, 9 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 would now be incorporated, which would construct and run the DLF, Marhowra.
The Ministry of Railways will hold 26 per cent equity in the JV company subject to a maximum of Rs100 crore.
Railway have completed acquisition of 226 acres of land for this project and already taken possession. The factory is expected to be established within a period of next three years at a cost of around Rs 1000 crore.