Agreement signed for Modern Locomotive JV Factory project at Madhepura
New Delhi: Alstom (www.alstom.com) has received a ‘Letter of Award’ from India’s Ministry of Railway to supply 800 double-unit Prima electric locomotives to Indian Railways (IR) in a deal worth some $4.3 billion.
The locomotives will be built at a new production plant at Madhepura in Bihar state under a joint venture in which IR will hold a 26% stake, subject to a maximum investment of Rs 1 billion.
All except the first five locomotives will be assembled in India under a technology transfer agreement.
Delivery of the 120kph 8.9MW units will take place between 2018 and 2028, and Alstom will maintain the fleet for a minimum of five years at purpose-built depots at Saharanpur in Uttar Pradesh and Nagpur in Maharashtra.
The locomotives will be used on India’s future Dedicated Freight Corridors and will help IR to achieve its target of increasing average freight train speeds from 20-25kph to 50-60kph.
In addition to the locomotives for IR, the joint venture will have the freedom to manufacture locomotives for customers in other countries.
On 9 November, IR sent a letter of acceptance to GE for a contract to establish a locomotive plant at Marhoura in Bihar; this will supply at least 1,000 locomotives over a 10-year period.
Contracts for both the Marhoura and Madhepura plants were scheduled to be signed within 30 days, and IR will provide the land for both facilities.