Letter of Award (L.O.A) for Setting up Electric Locomotive Factory at Madhepura

For Madhepura electric locomotive plant, Letter of Award issue

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?

(a) France
(b) Britain
(c) America
(d) Germany

Ans (a)

Related facts:

  • 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.






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