Ministry of Railways issued Letter of Award to GE Global Sourcing India Pvt Limited

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Who: Ministry of Railways
What: Issued LoA to GE Global Sourcing India Pvt Limited
When: 9 November 2015
Why: To set up Diesel Locomotive Factory

Ministry of Railways on 9 November 2015 issued a Letter of Award (LoA) to USA-based GE Global Sourcing India Pvt Limited for setting up of Diesel Locomotive Factory (DLF) at Marhowra, Saran district, Bihar and for procurement and maintenance of mainline Diesel Electric Locomotives.

With this, a Joint Venture Company between Union Ministry of Railways and GE Global Sourcing India Pvt Limited will be formed soon to construct and run the factory. The factory will manufacture modern diesel electric locomotives of 4500 HP and 6000 HP to Indian railways.

The Railways Ministry will hold 26 percent equity in the JV Company subject to a maximum of 100 crore rupees. The factory is expected to be established within a period of three years at a cost of about 1000 crore rupees.

The Company will work on an Assured Off-Take model of 100 locomotives per annum for 10 years. The company will also maintain these locomotives up to the 13th year. Thereafter, Indian Railways will take over the maintenance of these locomotives.

Highlights of the Letter of Award
• Around 1000 Locomotives will be manufactured in a period of ten years. The basic cost of 1000 freight locos will be about 14656 crore rupees.
• The 4500 HP and 6000 HP locomotives will also operate as 9000 HP and 12000 HP multiple units to provide the necessary economical and environmentally friendly motive power to growing heavy haul freight business of Indian Railways.
• These modern powerful locomotives will be useful for growing heavy haul freight operations and will also support the mega freight operations for the upcoming dedicated freight corridors
• These locomotives will be highly fuel efficient which will bring savings in fuel costs on Indian Railways.
• These will be equipped with latest technology like electronic fuel injection system, motor driven blowers and compressors, REMMLOT system, noise control to the latest standards.
• This factory will lead to direct and indirect employment and development of ancillaries and support industry in the neighbouring region.

The project was announced in the year 2006-07 to select a joint venture partner through International Competitive Bidding for manufacture and supply of modern diesel electric locomotives of 4500 HP and 6000 HP to Indian Railways.