Railway Project_PPP_ProjectsMonitor

The two new locomotive factories in Bihar, which were finalised by the Government of India last year and approved by the Union Cabinet last month, would be developed on public-private partnership basis, the Ministry of Railways has said. The project is a part of the government’s strategy to use PPP mode as an “important tool for mobilising resources in the development of railway infrastructure projects” in India.

The government has planned to establish an electric locomotive factory at Madhepura in Madhepura district and a diesel locomotive factory at Marhowrah in Saran district, both in Bihar. The two projects are estimated to cost Rs.1,294 crore and Rs.2,053 crore, respectively, with limited equity contribution by the Ministry of Railways.

Railway Project_PPP_ProjectsMonitorFollowing the commissioning of the projects, over a 10-year period, the factories will provide Indian Railways with 800 electric locomotives of 12,000 hp each and a mix of 1,000 diesel locomotives of 4,500 hp & 6,000 hp with high-level performance guarantees similar to international practices. The locomotives manufactured at both these factories will be fuel efficient and help mitigate the adverse impact of greenhouse gases.

“The successful execution of these projects by the joint venture route will usher Indian Railways into a new era of reforms,” the Ministry of Railways noted.

The government is hopeful that the new locomotive factories will attract significant foreign and domestic investment in these and other railway projects. In the case of the two locomotive factories in Bihar, the private JV partners will be selected through a two-stage international competitive bidding process. In fact, the RfQ bids have already been invited and their evaluation is underway. The bids will be finalised within six months of the Cabinet approval.

During the ongoing 12th Five-Year Plan, the Ministry of Railways has given in-principle approval for various PPP projects in the railway sector (see table). These include rail connectivity to the ports of Jaigarh and Rewas (Maharashtra), Ashtaranga and Dhamra (Odisha), and Hazira (Gujarat); redevelopment of railway stations, logistics parks, and private freight terminals; Mumbai-Ahmedabad high-speed corridor; elevated rail corridor between Churchgate and Virar in Mumbai; Sonenagar-Dankuni dedicated freight corridor; loco and coach manufacturing units; and energy conservation among other projects.

Investment Expected (` Crore)
High-Speed Corridor (Mumbai-Ahmedabad)
Elevated Rail Corridor (Churchgate-Virar)
Redevelopment of stations
Logistics parks
Private freight terminal and other freight schemes
Port connectivity projects
Sonnagar-Dankuni DFC
Loco and coach manufacturing units
Energy projects
Source: Ministry of Railways, Government of India

The proposals for the two locomotive factories in Bihar were finalised by an informal Group of Ministers chaired by the Minister of Finance and comprising the Minister of Railways and Deputy Chairman of the Planning Commission. This inter-ministerial group was formed under the direction of Prime Minister Manmohan Singh in order to fast-track infrastructure projects in the railway sector and come up with a creative financing-cum-implementation mechanism for the projects.

Meanwhile, towards the end of last year, the Ministry of Railways laid the foundation stones for two factories—a mainline electrical multiple unit (MEMU) coach factory near Rupaheli Station in Bhilwara district of Rajasthan and a forged wheel plant at Raebareli in Uttar Pradesh. The MEMU coach factory, which was approved in Railway Budget 2013-14, will be developed at an estimated cost of Rs.800 crore. It is a joint project of Indian Railways, Government of Rajasthan and Bharat Heavy Electricals Ltd. The forged wheel plant will be jointly developed by Indian Railways and Rashtriya Ispat Nigam Ltd, a PSU under the Ministry of Steel.

Location Description Status
Chhapra, Bihar Wheel manufacturing plant Construction work completed and machines commissioned; 3,500 wheels have been cast in pre-commissioning trials.
Marhowrah, Bihar Diesel locomotive manufacturing factory RfQ applications under evaluation.
Raebareli, Uttar Pradesh Rail coach manufacturing factory Phase-I completed and phase-II in progress.
Raebareli, Uttar Pradesh Forged wheel factory by RINL MoU and assured offtake agreement between Indian Railways and RINL signed.
Madhepura, Bihar Electric loco manufacturing factory RfQ applications under evaluation.
Dankuni, West Bengal Diesel loco component factory Construction work of under-frame shop has been completed; 20 under-frames manufactured in 2012-13; phase-II project in progress.
Dankuni, West Bengal Electric loco component factory RVNL entrusted with work of construction.
Kanchrapara, West Bengal Rail coach manufacturing factory Bidders shortlisted for joint venture after prequalification for participation in financial bid stage.
New Jalpaiguri, West Bengal Rail axle manufacturing factory MoU between Indian Railways and RINL signed for 100 per cent equity by RINL.
Guwahati, Assam Wagon manufacturing factory RfQ under finalisation before issue.
New Cooch Behar, West Bengal Electronic signal production unit. Railway land earmarked; RfQ notified.
Buniadpur, West Bengal Wagon manufacturing factory RfQ under finalisation before issue.
Haldia, West Bengal Diesel multiple unit manufacturing unit Phase-I civil and electrical work completed; first rake furnishing of DMU completed.
Kazipet, Andhra Pradesh Wagon manufacturing factory RfQ under finalisation before issue.
Sitapali, Odisha Wagon manufacturing factory RfQ under finalisation before issue.
Palakkad, Kerala Rail coach manufacturing factory Land purchased by Ministry of Railways from the state government; RfQ for setting up the factory opened in December 2013.
Vidisha, Madhya Pradesh Traction alternator manufacture and overhaul of AC traction motors of high horse power diesel locomotive factory RITES appointed as consultant for advisory on setting up the factory.
Chandigarh Modern signalling equipment factory Work sanctioned in 2013-14 on assured offtake model through PPP.
Bhilwara, Rajasthan Main line electrical multiple unit manufacturing facility by BHEL. MoU between Indian Railways and BHEL signed.
Source: Ministry of Railways, Government of India

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