Railways issue LoA to Siemens for $ 3.2 billion contract for 9000 HP Electric Freight Locomotives
New Delhi, December 24, 2022
Indian Railways have issued the Letter of Award (LoA) for a $ 3.2 billion contract to Siemens India for manufacturing and maintenance of 9000 HP electric freight locomotives.
The 1,200 high horse power (9000 HP) electric locomotives will be manufactured over a period of 11 years at the Railways Factory at Dahod in Gujarat, an official press release said.
It would entail manufacturing of the 1,200 locomotives and their maintenance for 35 years.
"The estimated value of contract is about Rs 26,000 crore (about $ 3.2 billion), excluding taxes and price variation," the release said.
The agreement with Siemens India will be signed within 30 days of issue of LoA. The prototype locomotives are to be delivered in the coming two years. The Dahod Unit will be fully constructed for manufacturing these locomotives within two years.
Siemens, selected as technological partner, will manufacture these locomotives at Dahod and maintain these locomotives at four maintenance depots at Vishakhapatnam, Raipur, Kharagpur and Pune for a period of 35 years utilising Railways' manpower.
"Suitable economic drivers will ensure complete indigenization of the manufacturing which in turn will lead to development of ancillary manufacturing units making it a true ‘Make in India’ initiative. The project will also lead to development of the Dahod region and generate employment," the release said.
"These High Horse Power (9000 HP) locomotives will be the future workhorse for freight operation on Indian Railways. These locomotives are planned for use primarily on Western DFC and on graded sections of Railways for hauling container freight trains in double stack configuration of 4,500 tonnes at 75 kmph at 1 in 200 gradient and improve the average speed of such trains to around 50-60 kmph over the existing 20-25 kmph. The quantum jump in the operating parameters will lead to increase in the throughput and also enhance line capacity. These locomotives, equipped with state of the art IGBT based propulsion technology, will provide savings in energy consumption due to regenerative braking technology," it said.
There is a provision to manufacture and supply Standard Gauge locomotives for export market, the release said.
"Indian Railways have selected Siemens India through a fair, transparent and competitive bidding process as the technology partner to manufacture and maintain these locomotives utilising Railway staff under the supervision of Technology Partner," it said/
The technology partner will also ensure 95% availability and 1,50,000 km of trouble-free operation of locomotives before any maloperation can take place as the guaranteed Key Performance Indicators (KPIs).
The entire bid process has been conducted in a fair, transparent and competitive manner and awarded in record time through electronic bidding. Ministry of Railways had decided to conduct a single-stage two-packet bidding process for obtaining technical and financial bids for selection of a suitable Technological Partner. The Notice inviting Bid for selection of Technological Partner was issued on 20th April 2022. Financial bids were opened on 6th December 2022. After detailed evaluation of the bids, Ministry of Railways declared Siemens Limited, India as the selected Technological Partner.