New Delhi, Nov 11
Indian Railways has issued the Letter of Award (L.O.A.) for setting up of Electric Locomotive Factory (ELF) at Madhepura in Bihar to a France-based company M/s Alstom Manufacturing India Limited.
This new factory will supply 800 high horse power (12000 hp) electric locomotive over a period of 11 years.
The project will have an investment of Rs 1300 crore for setting of the factory and maintenance facilities.
It would also entail procurement of 800 High horse Power (12000 HP) locomotives costing about Rs. 19,000 crore.
A joint venture company between Ministry of Railways and M/s Alstom Manufacturing India Limited will now be incorporated and agreement between the two will be signed within the next 30 days.
This JV shall construct and run ELF Madhepura. Ministry of Railway will hold 26 per cent equity in JV Company subject to a maximum of Rs.100 crore.
The proto-type locomotives are to be delivered in the coming two years and the factory is to be set up within a period of three years from signing of the Agreement.
The project requires only five electric locomotives to be imported.
The remaining 795 locomotives will be built in India.
The project would also enable Indian Railways to have a fleet of locomotives equipped with state of the art propulsion technology.
Earlier Indian Railways had issued L.O.A. for setting up of Diesel Locomotive Factor (DLF) to M/s GE Global Sourcing India Pvt. Ltd. for manufacturing and supply of 1000 Diesel locos at about Rs.14,656 crores in a period of ten years with establishment of factory costing about Rs.1000 crores.
These two big ticket projects at Marhowra and Madhepura will usher in inflow of substantial FDI in Indian rail sector.
