Madhepura Electric Loco Factory, Kanchrapara Emu/Memu Coach Factory, Trainset Project

Member Electrical Railway Board Shri Navin Tandon Holds Press Conference To Give Briefing About Madhepura Electric Loco Factory, Kanchrapara Emu/Memu Coach Factory, Trainset Project 
Member Electrical Railway Board Shri Navin Tandon held press conference to give briefing about Madhepura Electric Loco factory, Kanchrapara Emu/Memu coach factory, trainset project on 12th November, 2015. Following is the brief summary of information provided by him:- 


Salient Feature 

Ø Selection of JV partner through 2 stage (RFQ/RFP) International Competitive Bidding (ICB);

Ø Bidding Parameter: Unit Price of a Locomotive;

Ø Selected bidder to form a JV with 26% equity of MoR ( Equity limited to Rs 100 Cr);

Ø MoR to provide land for Factory on 30 years lease (Land acquired as per the provision of Railways Act);

Ø Factory to be set-up within 3 years of award of contract;

Ø Prototype Locomotive Supply to commence within 2 years of award of contract;

Ø Imported locos - 5 (0.625% of total procurement)

Ø Indigenous locos – 795

Ø All payments to be made in INR

Ø Custom duties payable only on imported 5 locomotives

Ø JV Company permitted to export locos from this factory after meeting IR’s requirement.

Ø Price discovered on least life cycle cost basis.

Ø Most energy efficient with regenerative braking.

Ø Project enables continuous upgrade of technology over time.

JV’s Obligation 

Ø Setting up of Locomotive Factory and Township at Madhepura to manufacture 12,000 hp Electric Locomotives

Ø Setting up of two Maintenance Depots for maintenance (Depots to be transferred to MoR) – Saharanpur and Nagpur

Ø Setting up of one Training Institute at Saharanpur

Ø Supply of 800 locomotives over 11 years (Annual variation in quantity: +/-10% )

Ø Maintenance of first 250 locomotives for 13 years (POH + 1 Yr) at Saharanpur

Ø Maintenance Supervision of next 250 locos for 4 years (Man power to be provided by MoR) at Nagpur

Ø On-shore and off-shore training of IR personnel.

Ø JV to ensure guaranteed Availability (95%) / Reliability (2,00,000 kms per failure) and 87% Energy Efficiency (product of efficiencies of Traction Transformer, Motor and Converter) with provision of penalty for non-compliance.

Ministry of Railways’ Obligation 

Ø Provide land comprising the site (275 acres), free from encumbrances on lease for construction of the Factory and Township on a lease of 30 years.

Ø Provide land comprising the depot sites free from encumbrance on license for setting up and operating Maintenance depots.

Ø Provide Rail track and electrified traction lines connecting the Factory and Maintenance Depots to the existing railway track.

Ø Provide road connectivity to the Factory and Maintenance Depots

Ø Provide electric transmission line and substation for the factory (132/33 kV) within 2 years.

Ø 26% of Equity contribution by MoR in JV subject to ceiling of Rs 100 Cr. (Debt:Equity - 70 :30)

Ø Assured off-take of 800 Locomotives by MoR from JV

Procurement of 12000 HP High Horse Power Locomotives 

800 locomotives are to be procured over a period of 11 years commencing from the 2nd Anniversary of Appointed Date.

Average cost of acquisition of each locomotive is Rs. 24.88* crore at Current Price.

Total Cost of acquisition of 800 locomotives is Rs 19,904 crore at Current Price over 11 years.

* Unit Price of Locomotive quoted by L1 bidder is Rs. 28.4 crore which is the Base Price of 35 locomotives to be supplied in the Third Year of Supply. The price of locomotives from the fourth year of supply would be subject to a 3% annual reduction over the Supply Period. The price of the 5 imported locomotives would be 110% of the Base Price.

The Selected Company would be required to set up a manufacturing facility at Madhepura, Bihar and two Maintenance Depots at Saharanpur and Nagpur to undertake maintenance of the first 500 locomotives.

Only 5 locomotives are to be imported and the balance 795 are to be Made in India.



Cabinet in Feb, 2010 approved setting up a Rail Coach Factory at Kanchrapara in West Bengal at an estimated cost of Rs. 860 crore through JV route (with 26% equity of MoR limited to Rs. 60-80 crore) for manufacture 500 EMU/MEMU coaches annually.

As per estimates of National Transport Development Policy Committee (NTDPC) there would be a requirement of 30,000 EMU/ MEMU coaches by 2032.

The JV partner is to be selected through International Competitive Bidding (ICB). Bid documents are to be prepared on the basis of bid documents approved by the Cabinet for Madhepura and Marhowra factories duly incorporating project specific changes.

Project Contours 

Selected JV partner will set up a factory at Kanchrapara in West Bengal for manufacturing of EMU/MEMU coaches and maintenance and training infrastructure on IR. It is proposed to produce about 5000 coaches over 10 years. The coaches shall be of state-of-the-art technology with IGBT propulsion system and of stainless steel/ aluminium design to ensure higher energy efficiency and longer life.

This factory would be set up on Railway land at Kanchrapara (West Bengal).

Site works related to filling of land, widening of roads and provision of 33kV substation is nearing completion.

The Factory will attract significant FDI apart from creating opportunities for direct and indirect employment. There will be transfer of technology to India to manufacture various equipment including IGBT based propulsion system. The project has the potential of developing India as a manufacturing hub for manufacture of State-of –Art EMU/MEMUs and Metro Coaches in South East Asia.

Bidding Process 

A two stage bidding process has been adopted for selection of a suitable JV partner to execute the project. Accordingly, an exercise for pre-qualification of bidders was initiated and eight firms had been pre-qualified on August 13, 2010 for submission of financial bids.

However, the process was annulled due to efflux of time and fresh RFQ has been initiated on October 1, 2015. The application due date is January 15, 2016 and the RFP process is expected to conclude by April/ May 2016. 
Ø The proposal for introduction of Train Sets was announced in the Railway Budget 2015-16. In pursuance of the above, Ministry of Railways has initiated a two stage bidding process comprising of RFQ and RFP for selection of a bidder to manufacture and supply 17 Train sets comprising 316 Rail cars. Two type of Train Sets are to be procured, one comprising 20 Rail Cars with sleeper arrangement (AC-1, AC-2 tier and AC-3 tier) and the supply of 16 Rail Cars with sitting arrangement (EC and CC). These trains are proposed for introduction of Rajdhani/Shatabdi type of services.

Ø The first two proto-type Train Sets would be supplied by the Company after two years of the appointed date. The supply would continue for a period of five years thereafter.

Ø The selected bidder would have the option to import two Train Sets and the subsequent Train Sets will have to be manufactured in India, thus making it a true ‘Make in India’ proposition.

Ø In order to enable Indian Railways acquire technology for maintenance matching international standards, the selected Company would be entrusted maintenance obligation for a period of 7 years. Designated staff of the Indian Railways will be deputed to ensure transfer of maintenance skill and learn new systems of maintenance which would enable IR to maintain the Train Sets after 7 years for its life of 35 years. It would thus, ensure a true transfer of technology for maintenance. In this direction, the Company would be required to set up a maintenance facility at Ghaziabad.

Ø The Company would undertake comprehensive maintenance of the Train Sets in accordance to the prescribed maintenance schedule and also ensure guaranteed reliability and availability as per defined terms. Prescribed Maintenance Fees would be paid to the Company for carrying out the Maintenance Obligation.

Ø The Company would transfer all the maintenance assets including the depots to the Government on completion of the maintenance period of all the Train Sets.

Ø Bidding Process 

A two stage bidding process has been adopted for selection of a Bidder to execute the project. Accordingly, an exercise for pre-qualification of bidders was initiated and following five Applicants have been pre-qualified on September 11, 2015 for submission of financial bids.

1) Consortium of Alstom and BEML

2) Consortium of CAF and Bombardier

3) Consortium of Hitachi and Ansaldo

4) Consortium of Kawasaki, Toshiba and BHEL

5) Siemens

The Bid due date is December 21, 2015.

Seminar on Climate Change Initiatives of Indian Railways 
Indian Railways have started their CoP21 campaign regarding their role and initiatives for reducing carbon footprint by India. Being a big player in the transport industry and the most energy efficient form of mass transportation, Indian Railways will play an important role in fulfilling the country’s commitment for reduction in emission of Green House Gases. Apart from increasing the share of rail mode in freight transport from 36% to 45% as committed in the Intended Nationally Determined Contributions (INDCs) submitted by India contributing to sizeable reduction in carbon footprint, Indian Railways are taking actions for improving energy efficiency, increasing share of renewables and more efficient Management of Water.

As a part of their campaign, Ministry of Railways conducted a seminar on 10th Nov. ’15 wherein senior officials of Ministry of Railways and its PSUs participated. Apart from discussing the strategies for increasing the modal share of rail transport as envisaged in the INDCs, other ‘Climate Change’ topics like energy efficiency in industries, sustainable habitation including green buildings were also discussed in this seminar through the presentations made by experts in the field like Bureau of Energy Efficiency (BEE), Indian Green Building Congress (IGBC) of CII and TERI. During this meeting, salient feature of India’s INDCs with specific reference to INDCs on rail transport were discussed. Many of these subjects can lead to new policy initiatives and actions in IR in the coming days.

The seminar was chaired by Sh. A.K. Mital, Chairman, Railway Board and was attended by Sh. Hemant Kumar, Member Mechanical, Sh. Pradeep Kumar, Member Staff and many senior Railway officials from the Ministry as well as its PSUs. The seminar was organized by the Environment Directorate of Railway Board and conducted by Sh. K.Swaminathan, Advisor. 

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