The Union Cabinet today gave its approval for the setting up of an electric locomotive factory at Madhepura and a diesel locomotive factory at Marhowra, both in Bihar, at an estimated cost of Rs 1293.57 crore and Rs 2052.58 crore.
This is the second time that these projects got the cabinet approval.
“Earlier in 2009, the cabinet had approved the projects. But there are certain changes in the price bidding documents since then, which required cabinet approval,” said a senior Railway Ministry official involved with the project.
Over a ten-year period, the factories will provide the Railways with 800 electric locomotives of 12,000 horse power (HP) each and a mix of 1,000 diesel locomotives of 4,500 and 6,000 HP with high-level performance guarantees similar to international practices.
Railways had invited rate for quotation (RFQ) through global bidding in May this year for the two mega projects and got a good response with six companies showing interest in the electric locomotive factory and four in the diesel engine factory. The bidders include two Chinese companies which have shown keenness in both projects.
“The evaluation process of RFQ documents is on and we will finalise the shortlisting of bidders soon,” said the official.