Bombardier, Alstom in fray for Rlys` unit

Tag : bombardier transportation

The project will be implemented on a private-public partnershipbasis. The Railways will pick up a maximum of 26 per cent equitystake in a special purpose vehicle to be floated for the purpose.The remaining equity will come from the foreign partner.
The initial capital cost of the factory, as estimated by the IndianRailways, is Rs 1,000 crore. But industry experts say that theactual cost could go up in the range of Rs 2,000 to Rs 2,500 crorefactoring in to account the increase in the prices of criticalcomponents like steel, iron, cement, fuel among others.
The top international companies were all present in apre-application conference, which was held at Rail Bhawan onFriday.
Rajeev Jyoti, MD, Bombardier Transportation, said, " are very eagerto associate with the project. Since the agreement will be for along-term basis, we will have to carefully evaluate the commercial,legal and technical aspects before participating in the biddingprocess."
Similarly, a top executive of Alstom Transportation, who did notwant to be named, also expressed interest in participating in theproposed project. The factory will be set up on a build, own andoperate (BOO) basis for the production and supply of a minimum of660 locomotives over a period of eight years. and undertakemaintenance thereof for a period of up to 20 years.
The Indian railways will be subscribing to its equity for up to amaximum of 26 per cent of the issued and paid up equity capital ofthe company,subject to a maximum of Rs 100 crore.
A Rail Bhawan official said that the project is receiving a goodresponse from global locomotive manufacturers and they areexpecting a minimum of 5-6 major players in the final biddingprocess.
The due date for the application of request for qualification (RFQ)is on July 18, 2008 and the shortlisting of applicants will be donewithin 15 days from the application due date.
With the commissioning of the project, railway officials say thatthe Indian railway will be upgrading its technology to the nextgeneration, where the new locomotive which will have 12,000horsepower will have the capacity to pull a higher pay load at amuch higher speed of 100 km per hour. This will enable the IndianRailways to cut down their operational and maintenance cost.
thereby increasing productivity. Currently, Railways operateelectric locomotives with 6000 horsepower capacity having a speedof 80 km per hour.