Question: Recently Indian Railways had issued Letter of Award (L.O.A) for Setting up Electric Locomotive Factory at Madhepura, Bihar to M/S Alstom Manufacturing India Limited. Alstom belongs to which country?
- On 10 November 2015 Indian Railways has issued the Letter of Award (L.O.A.) for setting up ofElectric Locomotive Factory (ELF) at Madhepura in Bihar to a France-based company M/s Alstom Manufacturing India Limited.
- For manufacturing factory a joint venture (JV) company between Ministry of Railways and M/s Alstom Manufacturing India Limited will be incorporated.
- The factory will ensure supply of modern electric locomotives that are of high horse power (12,000 hp) engines.
- This new factory will supply 800 high horse power (12000 hp) electric locomotives over a period of 11 years.
- These locomotives will cost about Rs. 19,000 crore.
- These locomotives are planned for use in the Eastern Dedicated Freight Corridor and also for Pan India operations for hauling freight trains of 6000 tonnes at 100 kmph.
- It will also help in improving the average speed of such trains to around 50-60 kmph over the existing 25-30 kmph.
- Indian railways will hold 26 per cent equity in JV Company subject to a maximum of Rs 100 crore.
- The project would bring in an investment of Rs 1300 crore for setting of the factory and also the maintenance facilities.
- A joint venture company between railways and Alstom will now be incorporated and agreement between the two will be signed within the next 30 days.
- The project requires only five electric locomotives to be imported. The balance 795 locomotives are to be manufactured in India.
- The contract provides suitable economic drivers which would ensure complete indigenization of the manufacturing which in turn will lead to substantial development of ancillary manufacturing units.
- The project would also lead to development of the region where the factory would be set up and also those where the maintenance facilities would be set up.
- The project would bring in substantial development in these areas.
- It will also lead to generation of direct and indirect employment.
- This project will provide significant boost to the Make in India initiatives.