FDI in Indian Railways: Siemens, Alstom, Bombardier submit bids for Rs 1,296 cr loco factory

By PTI  www.financialexpress.com

Marking first major FDI offer in Indian Railways, three global companies have submitted financial bids for setting up of a modern electrical locomotive factory in Madhepura in Bihar at the cost of nearly Rs 1,300 crore.

Siemens, Alstom and Bombardier have submitted price bids for setting up the factory in a joint venture model to manufacture 80 state-of-the-art locos per year at an estimated cost of Rs 1296 cr, said a senior Railway Ministry official.

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.

Dubbed as first major project under ‘Make in India’ initiative in the public transporter, the successful bidder will manufacture 800 locomotives after getting contract award in Bihar. More info

Author: admin