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Ministry of Railways decides to enable one of the UTS Counter into UTS cum PRS counter at stations only




Ministry of Railways decides to enable one of the UTS Counter into UTS cum PRS counter at stations only for refund of PRS tickets purchased from counters (PRS counter ticket)

These instructions shall be implemented w.e.f. today i.e. 01.12.2015.


In yet another passenger friendly measure, Ministry of Railways have now decided that one of the UTS counter at the existing PRS ticket booking locations shall be converted into UTS cum PRS counter only for cancellation and refund of PRS. Counter tickets during the non-working hours of PRS counters at stations or in case of non availability of current counters at the station.

These instructions shall be implemented w.e.f. today i.e. 01.12.2015.

            Cancellation and refund of PRs counter tickets shall be made across the earmarked UTS cum PRS counter (only for refund of PRS counter tickets) beyond the working hours of existing PRS counters or current counters as per refund Rule, under the following circumstances : -

(a)   Refund shall be granted as per refund Rule

(b)   This facility shall be available on the tickets for those trains whose scheduled departure time is within 24 hours from the time of cancellation of tickets.

(c)    If current counters are not available at the station or no PRS counter is working beyond the working hours of PRS counters in that case PRS counter tickets may be cancelled and refund may be granted across such nominated UTS cum PRS counter.

(d)   In no case during the working hours of PRs or current counters of a particular station such refund shall be granted across UTS cum PRS counter.

(e)    (i) Cancellation ticket shall not be issued in this case and original tickets shall be retained by counter clerk as is being retained at PRS counter for accountal purpose. No UTS roll shall be utilised for this purpose.

(ii) However, if on one PNR all the passengers (say 6 passengers) have confirmed accommodation and out of 6 passengers two passengers do not want to travel and cancel the same in that case new tickets shall require to be issued. For such tickets the printer of existing PRS counters may be utilized.

(iii) If the passenger has already provided mobile number, SMS on the registered mobile number shall be sent for refunded amount. Passenger shall also be asked to provide the mobile number in the cancellation form during the time of cancellation to send the SMS for refunded amount. Adequate number of cancellation forms shall be made available at such counters.

            These instructions shall be implemented w.e.f. today i.e. 01.12.2015.



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Formal Contract Agreement Signing Ceremony Held For The Two Rs.40,000/- Crores High Horse Power Hi-Tech Best-In-Class Modern Locomotive Joint Venture Factory Projects (Electric Locomotive Factory At Madhepura And Diesel Locomotive Factory At Marhowra - Bihar)

The Two Projects Are Really A Win Win Occasion For All The Stakeholders : Arun Jaitley

Two Projects Finalized In The Most Transparent Manner : Suresh Prabhu



The formal contract agreement signing ceremony for the two Rs.40,000/- crores High Horse Power HI-TECH best-in-class modern locomotive Joint Venture factory projects (Electric Locomotive Factory at Madhepura and Diesel Locomotive Factory at Marhowra - Bihar) took place today i.e. on 30.11.2015 in New Delhi.  This signifies a giant leap for the nation’s biggest ever “Make in India” initiative. The signing ceremony took place in the august presence of Union Minister for Finance, Corporate Affairs and Information & Broadcasting, Shri Arun Jaitley, Union Minister of Railways, Shri Suresh Prabhakar Prabhu, Union Minister for Communication & Information Technology Shri Ravishankar Prasad, Union Minister of State for Skill Development and Entrepreneurship (Independent Charge), and MoS Parliamentary Affairs Shri Rajiv Pratap Rudy, Union Minister of State for Micro Small and Medium Enterprises, Shri Giriraj Singh, Union Minister of State for Railways Shri Manoj Sinha, Union Minister of State for Drinking Water and Sanitation Shri Ram Kripal Yadav,  Former Union Minister and Member of Parliament Shri Sharad Yadav and other Members of Parliament hailing from Bihar including Shri Rajesh Ranjan (Shri Pappu Yadav) also graced the occasion. It is a momentous occasion for Indian Railways as well as for the nation.  The signatories to the contract agreement for Madhepura factory were Shri Sudheer Kumar, Executive Director (Electrical Development) Railway Board and Shri Bharat Salhotra, MD, ALSTOM Transport India. The signatories to the contract agreement for Marhowra factory were Shri Jayant Kumar, Director (Mechanical Works), Railway Board and Shri Nalin Jain, MD, GE Transport India. 

On this occasion, Ambassador of France to India H.E. Mr. Francois Richier, Chairman, Railway Board, Shri A.K. Mital, Member Electrical Railway Board Shri Navin Tandon, Member Mechanical Railway Board Shri Hemant Kumar, Financial Commissioner Railways Shri S. Mookerji, Member Staff Railway Board Shri Pradeep Kumar, Secretary, Department of Industrial Policy and Promotion (DIPP), GoI Shri Amitabh Kant, both the JV partners(of the two proposed locomotive factories) namely CEO, M/s GE TRANSPORT, USA Ms Jamie Miller; CEO, M/s ALSTOM, FRANCE Mr. Henri Poupart-Lafarge were among those present.

Earlier this month, Indian Railways achieved an important milestone when it awarded Letters of Acceptance(LoA) for setting up two modern locomotive factories – one Diesel Locomotive Factory (DLF) at Marhowra and the other Electric Locomotive Factory(ELF) at Madhepura, both in Bihar.  These two factories are the excellent example of biggest “Make in India” initiative ever undertaken by Indian Government. While the contract for DLF Marhowra has been awarded to a USA – based Company M/s GE Global Sourcing India Pvt. Limited, the contract for Madhepura ELF has been awarded to a France – based Company M/s Alstom Manufacturing India Limited.  These two factories also mark the flow of FDI in the Railway sector.

DLF Marhowra will manufacture and supply modern diesel electric locomotives of 4500 HP and 6000 HP (which in combination can operate as 9000 HP and 12000 HP multiple units).  ELF Madhepura will manufacture and supply modern electric locomotives of high horse power namely 12000 HP.  Under the agreement, 1000 diesel locos will be manufactured in a period of 11 years with a basic cost of Rs.14,656 crore and 800 electric locos will be manufactured in a period of 11 years at a basic cost of Rs.19904 crore.  The cost of setting up factories is around Rs.1300/- each.  Taking into account the cost of setting up factories and maintenance facilities, these two projects together are worth Rs.40,000/- crore.

These modern powerful state of the art locos will be useful for heavy haul freight operations and mega freight operations in the dedicated freight corridor and for pan India operation.  These factories would lead to substantial development of ancillary manufacturing units, generation of direct and indirect employment and substantial development in the region. 

These two factories are joint ventures (JV) of the Ministry of Railways.  The fair, transparent and competitive bidding process adopted in selecting the JV partner received wide-spread appreciation from all stakeholders.  These projects will usher in new technologies into the Indian industry at large through high paced indigenization.

Speaking on the occasion, Union Minister for Finance, Corporate Affairs and Information & Broadcasting, Shri Arun Jaitley said “that today is really a win win occasion for all the stakeholders. I think this is one step which has been taken by Indian Railways which is literally going to benefit everyone. First of all it is going to benefit the Indian Railways itself. We had a very old Railway system in India which is on its way towards improvement. Some aspects are becoming old and need modernization and therefore Railways in the past and a half has been working on a structured game plan in order to strengthen the railway infrastructure and modernize the Railways as a whole. Lot of funds have been placed through the budgetary resources and also long-term finance has been made available by the LIC and we took momentous decision to invite both private partnership and FDI. Setting up of these factories is an important milestone in the creation of the Railway infrastructure and both these activities will channelize economic activities. It is very important contract at entry point into the railway system by international M/s like GE and Alstom who will be manufacturing these ecologically friendly locomotives. It is a win win situation for Bihar as it will boost the economy of Bihar. This is very big first major manufacturing investment in Bihar and therefore as the Railway Minister said this will create eco-system within ancillary unit services and will create huge opportunities of employment and that is why everyone even the farmers will also benefit from this activity.  I have also a reason to be satisfied because it is a major manufacturing investment as far as India is concerned because we have been facing with a large number of domestic and global challenges.  The slowdown of the global economy at last has a visibly impact on our exports. So this is one channel what we have to help in such scenario.  There is also private sector investment which has now started picking up. Despite a great adversity of two successive years of poor monsoon and a combination of other factors which is holding us back, we seemed to be overcoming these challenges and now have reasons to be more than satisfied. We do have challengers but there are now opportunities of private investment and FDI in public sector. Manufacturing has achieved 9.3 % growth which is a significant figure.  We will continue this momentum”.

Speaking on the occasion, Minister of Railways Shri Suresh Prabhakar Prabhu said that it is really a big feet that these two projects have now been finalized in the most transparent manner. Shri Suresh Prabhu pointed out that this could happen because the process of decision making has been fast track now in Railway Ministry through delegation and decentralization of power initiated by him not only to Members of Railway Board but also to the levels of General Managers and also Divisional Railway Managers. This expeditious decision to award contracts for these two factories is also in line with the Hon’ble Prime Minister’s policy of best governance. Shri Suresh Prabhu said that these factories will now lead to eco-system for developing ancillary units which in turn will become part of global supply chain and spur vertical and horizontal manufacturing activity. The other spin-off of these two big ticket project will be to help in the increase of GDP.  Referring to the Morgan Stanely’s recent report on Indian Railways Shri Suresh Prabhu pointed out that this report has categorical stated that Indian Railway has now achieved the true potential of driving country’s economy in a big way. He said that these two locomotive factories, which is a joint venture, are set up for inducting high horse power freight locomotives into the Railway System for improving the efficiency of operation in terms of increasing the speed of freight trains, thereby improving the throughput capacity and also enhancing line capacity. This would also help Indian Railways to benchmark its freight train operation with the global trends of running freight trains. Referring to the COP-21 Summit in Paris Shri Suresh Prabhu said that the entire world is concerned about reducing emission and improving environment. He said the locos being produced in these two factories are best in class and are expected to be energy efficient and ecological friendly.  It is really a best Make in India Initiative. The Railway Minister pointed out that the bidding process followed by the Ministry has been rated as the most transparent and efficient process by the Industry.  Even the agencies losing the bid have expressed appreciation and satisfaction over the transparent process adopted by the Indian Railways.  He further stated that the requirement of maintaining the locomotive is to ensure compliance to stringent performance parameters which would enable the Railways to utilize the assets to its maximum utility.

Speaking on the occasion, Minister of State for Railways Shri Manoj Sinha said that the production of locos from these two factories will substantially increase the speed of goods trains and will therefore change the freight moment scenario in a big way. Shri Sinha said that his Government is always committed to the protecting the interest of farmers and the youth. He said that these two projects will lead to economic development and will generate direct and indirect employment. These projects have been planned in the true spirit of Make in India initiative of Hon’ble Prime Minister Shri Narender Modi. He also appreciated the transparent manner adopted in awarding these contracts.

 In his speech, former Union Minister and Member of Parliament Shri Sharad Yadav congratulated Govt. of India and Indian Railways for finally taking steps for setting up these two factories which are quite useful not only for Bihar but for the nation.



Speaking on the occasion, the Chairman Railway Board Shri A. K. Mital while welcoming the delegates and emphasizing on the need of ‘Make in India’ initiative stated that these two projects would fulfill the multiple objectives for the country.  He stated that these locomotive factories are part of the process of network consolidation and modernization unveiled by the Government. Explaining the major highlights of the project, the Chairman, Railway Board stated that Ministry of Railway is committed and have indomitable will to go all-out to fulfill its part of this partnership whether it be providing of land, power connection, rail/road connectivity and meeting its commitment towards procurement of 1000 Diesel and 800 Electric Locomotives and whatever other commitments are embodied in the agreement. Highlighting this big achievement of the Railways, Shri A. K. Mital stated that Major spin-off benefits for the Railways include optimization of our maintenance practices.  At a policy level, this builds a platform for a modern railway equipment industry that would help to upgrade the technology periodically. He stated that locomotive factories will also help develop ancillary industries in the country.

 BRIEF ABOUT THE TWO FACTORIES

(a)   Background :-



The Cabinet in December 2006 and February 2007 had approved setting up of the  Diesel Locomotive Factory at Marhowra, Bihar and Electric Locomotive Factory at Madhepura, Bihar respectively through the Joint Venture Routes. The project envisaged setting up of a factory each for manufacturing High Horse Power Electric locomotives (12000 HP) and Diesel locomotives (4500/ 6000 HP) and also development of maintenance facilities for maintenance of a specified number of locomotives for a specified period. The scope of the project includes an assured off-take of 1000 Diesel and 800 Electric locomotives to be procured over a period of 11 years. The Joint Venture Partners for the projects were to be selected through an International Competitive Bidding (ICB) process. The equity of the Ministry of Railways (MoR) in the Joint Venture Company would be limited to 26% or Rs 100 crore whichever is lower. Ministry of Railways would provide land for the factory on lease to the Joint Venture Company for a period of 30 years in accordance with the conditions specified in the land lease agreement. The land for setting up of the maintenance facilities would be licensed to the Company. The factory of the Joint Venture Company would continue to function as a going concern beyond the specified supply period of 11 years and would be able to conduct business in a manner as it decides and would be governed by the relevant provisions of the Company’s Act, 2013. The Ministry of Railways would continue to hold an equity of not less than 10% in the JV Company until the supply period. Thereafter, the Ministry would have the option to exit from the Company. The Ministry of Railways would also have veto rights on certain reserved matters governing the function of the Company during the supply period. The Company would be free to produce additional locomotives over and above the assured off-take for the Indian Railways, for other customers during the supply period. The extension of land lease for the factory beyond the initial period of 30 years would be decided by the Ministry of Railways based on the conditions prescribed in the land lease agreement. The maintenance facilities created by the Company would revert back to the Indian Railways on completion of the maintenance obligations of maintaining a specified number of locomotives for a specified period.



1.                  Bidding process :-

 In order to enable Ministry of Railways to select a Joint Venture Partner for formation of the JV Company, a two stage bidding process was adopted. The first stage called the ‘Request For Qualification’ (RFQ) stage was for short-listing of bidders based on their technical and financial capacity. The RFQ process was initiated by Ministry of Railways in May 2013, following which four global leaders in the field of manufacturing locomotives were shortlisted for participation in the financial bid stage. The bidding documents comprising ‘Request For Proposal’ (RFP) and the Procurement-cum-Maintenance Agreement (PCMA) was considered and approved by the Cabinet in Jan.’ 2014. The RFP document along with the PCMA was issued to the shortlisted bidders in February/ March 2015 and the financial bids were received in August/ September 2015. Following the evaluation of the bids received, Ministry of Railways has identified the Selected Bidder and has awarded the contract to Alstom Manufacturing India Limited for Electric Locomotives and GE Global Sourcing Limited for Diesel Locomotives. The Bidding parameter was limited to a single number i.e the Price of a locomotive with all other parameters being fixed upfront as a percentage of the Price of Locomotive. This factor played an important role in enabling a faster evaluation of the Bid proposal and determining the Selected Bidder.

2.                  Broad Project Contours:-

The eligibility condition ensured that Companies who have design experience of producing and supplying locomotives were eligible for participation in the bid process. Further, the financial strength of the Company for executing such a large project was evaluated. The eligibility criteria required that the applicant had supplied specified Horse Power of Propulsion System in the preceding years of the application due date. Further, the Company was required to have net worth of Rs. 250 crore for the last Financial Year. The aforesaid eligibility criteria ensured that the Company having adequate technical and financial capacity, participated in the financial bid process. Further, it was necessary for the Company to own the Intellectual Property Right (IPR) for the design of the Propulsion System. Provisions in the Agreement would enable the Company to upgrade its technology over the long supply period, in order to enable the Ministry of Railways have the state of the art technology. By entrusting the Company, the obligation of maintaining the locomotive up to the periodic overhaul and also providing a guaranteed reliability and availability, enabled MoR to have a cost effective product evaluated over its life cycle. Further, the provision of allowing import of only a small proportion of the locomotives and the requirement of indigenous production of a major proportion of locomotives would ensure development of ancillary units, creation of jobs and also development of backward region. The indigenous production would lead to reduction in costs and also make it a true ‘Make in India’ concept. This is captured through an annual 3% reduction of the price of the locomotives commencing from the 4th Year of supply. This model would enable India to transform it into a major hub for production of locomotives and would develop a market for maintenance of locomotives. The key performance indicators of ensuring a high level of availability and reliability of the locomotives as part of maintenance obligation would lead to better availability of the freight trains for further utilization. The latest state of the art technology of the locomotives would also enable Ministry of Railways to achieve considerable costs economies in operation and also improve the throughput of freight trains. Additionally, the locomotives being energy efficient and having capacity of regeneration would reduce the energy costs which would translate in a reduced cost of operations. 

3.                  Comparison with Global Benchmarks

These locomotives would be best-in-class and would be of high horsepower, with high energy efficiency) and reliability. These locos will help railways improve its average speed of freight trains from the present level of 25 kmph to about 50-60 kmph and thereby improve its throughput and enhance line capacity.

Horse Power to trailing load ratio will improve from the present value of 1:1 to 2:1. International benchmark of Horse Power to Trailing load is more than two for freight operations. This factor enables faster movement of freight trains thereby improving throughput and enhancing line capacity.

The Guaranteed availability of locomotive is at least 95% and reliability is one failure for every 200,000 Km (for Electric) / 75,000 Km (for Diesel) of operation of a Locomotive. These performance bench marks are at par with Global Standards.

4.                  Price Discovery

The price discovered for the latest state of the art technology works out to less than the in-house production cost despite the investment in setting up of the factory and the maintenance facilities by the JV Company.



5.                  Project Benefit

The projects will bring in private investment of about 1300 crore for each project for setting up the locomotive factory and maintenance depots and bring in state-of-the-art technology to Indian Railways to run heavy haul trains and improve energy efficiency. This will help Indian Railways to modernize its rolling stock and improve upon its 20 year old technology.


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