GE in race to set up diesel loco unit

The public-private partnership (PPP) initiative of the railway ministry is going ahead full steam, with US giants GE and EMD among the front-runners for setting up a diesel locomotive unit in Marhowra in Bihar.

The ministry last week floated a request-for-proposal (RFQ) for the unit. While these two companies are among the first lot of players to have shown an interest in the project, sources say Bombardier, Alstom and Siemens are planning to bid for the railways' other upcoming electric locomotive unit in Madhepura in Bihar.

The RFQ for this unit is expected in October. The private company would have a 74 per cent stake in the units while the ministry would hold the rest.

Railway Minister Lalu Prasad had announced setting up of three locomotive and coach units in the railway budget. The process for setting up the third unit, in Rai Bareli, would begin next year, said sources.

Sources say the ministry, however, is yet to decide the technology for the new locomotives and their capacity.

GE and EMD are world leaders in diesel locomotive technology while Bombardier, Alstom and Siemens are known for their electric locomotives.

Indian locomotives' capacity is 3,800 horse power while the international standard is 6,000 horse power. Sources said once these units were set up, the ministry would look at manufacturing high capacity locomotives also.

The companies, on their part, are happy at a chance to own a majority stake in Indian locomotive units. A Bombardier official said this would give them a chance to showcase their cutting edge technology in India.

GE Infrastructure CEO Pratyush Kumar said apart from giving them an opening in the Indian market, this would give them a chance to convince the ministry about using their signalling technology as well.

A ministry had, a couple of years ago, held discussions with the GE executives on using the company's signalling technology. Kumar hopes things will open up once the units come up.

The companies are also looking at the railways' freight corridor project, which will require 600 powerful locomotives.

Another signal that the railway ministry is opening up to private partnership is a recent MoU between steel player Somani Group and Germany's Thyssenkrupp GfT Gleistechnik.

The Somani Group would now market the German company's equipment, like railway switches and rail sleepers, to the railways. The idea is to provide the railway ministry more options for acquiring state-of-the-art railway equipment.