Now Metro companies to procure minimum 75% of the train cars, under Make in India Campaign

Now Metro companies to procure minimum 75% of the train cars, under Make in India Campaign

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NEW DELHI: It is now mandatory for the metro rail companies to procure minimum 75% of train cars & 25% of critical equipment from within the country, a norm made compulsory under the ‘Make in India’ campaign. The Urban Development Ministry has incorporated these mandatory conditions in the metro rail companies’ tender documents which have been circulated to them, making the new norms effective immediately. Currently, it is not mandatory for the companies to procure metro train cars manufactured in India.

More Details:

  1. As per the new tender document, minimum 75% of the tendered quantity of metro train cars should be manufactured indigenously for which the suppliers may either establish independent manufacturing facility in India or partner with Indian manufacturers, provided the procurement is more than 100 cars.
  2. The requirement of metro train cars at the state level will be clubbed to enable applicability of local procurement norms.
  3.  As many as 1,912 metro rail coaches are operational in the country, presently and there is an immediate requirement of 1,420 train cars.
  4.  Over the next 3 years, more than 1,600 metro train cars would be required and each metro coach is estimated to cost about Rs 10 crore (approx US$ 1.54 Million).
  5.  Also, the norms make it mandatory for the metro rail companies to purchase 25% of the “critical equipment & sub— systems” from within the country.
  6.  For this, a list of critical equipment & sub-systems for procurement from indigenous manufacturing will be included in the tender document.
  7.  Also, It has been made mandatory for the companies with large size fleet to undertake in-house maintenance.
  8.  Meanwhile, the ministry has also standardised norms for rolling stock (coaches) & signaling equipment norms, covering 90% of the imports.
  9.  An official release said, this will incentivise setting up of manufacturing facilities in the country due to increase in orders.
  10.  It said, the Ministry has made it mandatory to procure 9 types of signaling equipment manufactured in the country, to promote indigenous manufacturing.
  11.  Also, the ministry will soon evolve common eligibility criteria for the suppliers of rolling stock & other equipment doing away with the present variations across different metro rail companies.
  12.  On April 21, in a discussion with the MD’s of metro rail companies, Rajiv Gauba, Urban Development Secretary, noted that such variations adversely impact competition.
  13.  A broad uniform criteria in respect of net worth, financial & technical capacities & experience of supply of rolling stock and other equipment should be evolved in 2 weeks, he said.
  14.  Currently, Metro rails are operational in 7 cities — Delhi, Mumbai, Kolkata, Gurgaon, Jaipur, Bengaluru & Chennai — with a total route length of 326 kilometer.
  15.  Metro rail projects with a total route length of 546 kilometer are under construction in 11 cities & projects with a total route length of 903 kilometer in 13 cities are under consideration.
  16.  Bombardier Corporation, which supplies coaches to the Delhi Metro Rail, has welcomed the government’s initiative on local procurement.
  17.  Harsh Dhingra, Chief Country Representative and Whole Time Director, Bombardier Transportation India, Harsh Dhingra said,“We welcome the decision of the government for metro rail  operators on indigenous and local content,” Bombardier Transportation, Chief Country Representative (India).”
  18.  He said that the company already maintains the norm of 75% of local procurement of metro train cars for the Delhi Metro Rail Corporation (DMRC).

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