In accordance with Prime Minister Narendra Modi's "Make in India" campaign, Railways has rolled out the first big ticket FDI proposal by finalising the financial bidding document for setting up the Rs 1200 crore modern electric locomotive plant at Madhepura in Bihar.
The 250-page Request for Proposal (RFP) containing financial bidding documents for the plant is ready and the shortlisted bidders have been intimated the same, sources in Railways said.
The first major joint venture Madhepura loco project was among top eight infrastructure projects being monitored by PMO.
Railways has earlier shortlisted four global companies - Alstom, Siemens, GE and Bombardier - for the electric locomotive factory.
With the government allowing 100 per cent FDI in rail sector, setting up of locomotive factory is crucial for Railways to give a boost to infrastructure sector.
The big ticket joint venture project is poised to take off after considerable delays, re-thinking and prolonged due diligence amid repeated revision of bidding documents.
The financial bidding will be opened on August 31 and there will be two pre-bid meetings held in between, the sources said.
The plant will manufacture 800 electric locomotives of 12,000 horse power over 11 years.
While five locomotives will be imported, 795 will be manufactured at Madhepura.
Railways will have 26 per equity while the global player will have 74 per cent equity in the project.
CNR Corporation and CSR Corporation, both based in China, had submitted qualifying bids through request for quotation (RFQ) for the locomotive factory but were rejected in the qualifying bid in May 2014.
