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This is going to change the Industrial landscape of Bihar completely!Home » Industry
Last Modified: Tue, Nov 10 2015. 12 37 AM IST
Railways awards Rs.40,000 crore of projects in Bihar to GE, Alstom
Projects will involve manufacturing 1,000 diesel locomotives and 800 electric locomotives over next 10 years
PTIBloomberg
GE will build a diesel locomotive manufacturing facility in Marhowra in Bihar, and maintenance sheds at Bhatinda in Punjab and Gandhidham in Gujarat. Photo: Ramesh Pathania/Mint
New Delhi: Indian Railways awarded contracts to General Electric Co. (GE) and Alstom to set up diesel and electric locomotive factories in Bihar at a cost of about Rs.40,000 crore.
The award of the contracts—which will mark the first big foreign direct investment in the railway sector—was announced one day after the ruling National Democratic Alliance (NDA) suffered an electoral debacle in Bihar.
The diesel locomotive factory in Marhora will cost Rs.2,052 crore and the facility to manufacture electrical engines in Madhepura will require an investment of Rs.1,293.57 crore.
The projects, which will be closely monitored by the Prime Minister’s office, will involve manufacturing 1,000 diesel locomotives and 800 electric locomotives over the next 10 years and are together worth about Rs.40,000 crore.
The contract agreements with GE and Alstom will be signed in a month, a railway official said.
Both projects were approved in 2007 by the then railway minister Lalu Prasad, but became mired in controversy and bureaucratic red tape.
The timing of the announcement is opportune for the Grand Alliance, comprising Prasad’s Rashtriya Janata Dal, the Janata Dal (United) and the Congress, that will be sworn into office in Bihar after handing an electoral drubbing to the NDA in state elections.
GE, the lowest bidder for the Marhora diesel locomotive factory, is expected to manufacture the 1,000 locomotives over 10 years. While 100 will be imported, the rest will be manufactured in Marhora as part of the ‘Make in India’ initiative. There will be two types of diesel locos—4,500 horsepower (HP) and 6,000 HP—manufactured by GE.
Two locomotive sheds will be built in Gandhidham (Gujarat) and Bhatinda (Punjab) for maintenance of the modern diesel locomotives.
Alstom, the lowest bidder for the Madhepura electric locomotive factory, will manufacture 800 high-power electric locomotives in the next 10 years. It will manufacture 12,000 HP electric locomotives to be used for heavy haulage. According to the contract, while five diesel locomotives will be imported, the remaining 795 will be manufactured in Madhepura.
Maintenance of the locos will also be the responsibility of the company and for this it will set up two maintenance sheds at Nagpur and Saharanpur.
Railways will have 26% equity and also provide land while the foreign companies will have a stake of 74% in each of the plants.
“This infrastructure project is further evidence of India’s position as a growth engine for Asia,” said GE chairman and CEO Jeff Immelt. “It is a major advancement and milestone for India and for GE, and a symbol of our commitment and support of the ‘Make in India’ initiative.”
Prime Minister Narendra Modi’s vision is to add track, world-class stations and bullet trains to spur the economy. India also plans to transport more freight, such as coal, on dedicated lines. The challenge is finding the money. The contract follows Modi’s decision to open the doors to foreign investment in railroads last July, part of a push for an ambitious Rs.8.5 trillion ($128 billion) revamp of the railway through 2020.
GE said the deal is the largest in its 100-year history in India. The company is yet to sign the pact to formalize the contract.
Dalian Locomotive and Rolling Stock, CSR Corp. and Electro-Motive Diesel Inc. also bid for the tender in 2013.
Running costs from ferrying about 23 million passengers—equivalent to Australia’s population—and three million tonnes of cargo daily absorb most of the railway’s revenue, starving the network of investment. Last year, the government allowed 100% foreign direct investment in the railway sector.
We build nothing comparable to these locos, what we have is vastly inferior both in terms of fuel efficiency and pulling power!So... from Indian technology to Foreign tech. Good for them..
Yes, but we have a history of building locos. Its about time we upgrade ours from our own indigenous know hows.We build nothing comparable to these locos, what we have is vastly inferior both in terms of fuel efficiency and pulling power!
This is a technological upgrade similar to the one where the IR moved from steam to diesel and electric locos.
Nobody is selling that tech, as for indigenous development it's gonna take time. This loco buy is designed to buy us that time!Yes, but we have a history of building locos. Its about time we upgrade ours from our own indigenous know hows.
So... from Indian technology to Foreign tech. Good for them..
DLW already builds locomotives with ToT from GE-EMD.We build nothing comparable to these locos, what we have is vastly inferior both in terms of fuel efficiency and pulling power!
This is a technological upgrade similar to the one where the IR moved from steam to diesel and electric locos.
What we build is comparable to Older model, low powered western locomotives!DLW already builds locomotives with ToT from GE-EMD.
CLW already builds locomotives with ToT from ABB.
Our existing locomotives are comparable to many contemporary western locomotives.
CLW WAP-7 (1 unit): 6350 HP (4735 kW).What we build is comparable to Older model, low powered western locomotives!
Except for the WDG 5 no other domestically produced loco( electric or diesel) comes close in terms of horsepower.
As far as efficiency and emission controls are concerned nothing we have comes close to the GE EVOLUTION TIER4.
The WAP 7 is also by default 2 units with two cabs i.e. each unit is 3125 HP.
CLW WAP-7 (1 unit): 6350 HP (4735 kW).
CLW WAP-7 (2 units): 12700 HP (9470 kW).
Alstom KZ8A (by default 2 units): 11800 HP (8800 kW).
Alstom 2ES5 (by default 2 units): 11265 HP (8400 kW).
The Alstom models you have mentioned are inferior to the ones that are manufactured by CLW.
The Heaviest Freight loco we use is the WAG 9The WAP-7 can also haul loads of 24-26 passenger coaches (1,430–1,550 t or 1,410–1,530 long tons or 1,580–1,710 short tons at 140 km/h or 87 mph)
http://www.alstom.com/products-serv...ns/products/2es5-electric-freight-locomotive/The 2ES5, with its 4 bogies, can travel at speeds of up to 120 km/h. With an output of 8,400 kW, it is capable of hauling freight convoys of more than 13,200 tonnes at its continuous rating over distances of up to 3,000 km.
Not true.The WAP 7 is also by default 2 units with two cabs i.e. each unit is 3125 HP.
I may be incorrect there however it does not change the fact that the WAP 7 is a passenger loco and what we are buying is freight locos, there the ALSTOMS outpace our domestic freight locos.Not true.
WAP-7 by default is one unit, and it is 6350 HP, not 3125 HP, as you state.
The number of cabs is irrelevant.
Not contending whether a locomotive is goods, passenger, or mixed.I may be incorrect there however it does not change the fact that the WAP 7 is a passenger loco and what we are buying is freight locos, there the ALSTOMS outpace our domestic freight locos.
Look we can put ten WAG 9'S in a series and say we have the most powerful locomotive in the world rated at 61250hp, that is simply stupidity.Not contending whether a locomotive is goods, passenger, or mixed.
WAP: The P is for passenger.
WAG: The G is for goods.
WAM: The M is for mixed (goods and passenger).
I was contending your statement about horsepower, which I have highlighted in red.
We have been manufacturing WAP-7 since 1990, and the locomotives you have mentioned are inferior to our WAP-7 as far as horsepower goes.
Coming to freight locomotives, we have the CLW WAG-9 rated at 6125 HP for one unit, which is still superior to the two Alstom locomotives you have mentioned as far as horsepower is concerned.