Govt promotes Make in India in metro procurement projects
Q. Metro companies will now invite tenders for procurement of which signalling equipment?- Published on 24 Apr 17a. Make in India
b. Made in India
c. India Shining
d. None of the above
ANSWER: Made in India
With rapid expansion of metro rail projects in the country, Ministry of Urban Development has taken several far reaching decisions to promote Make in India campaign.
These include stipulating certain mandatory conditions to be incorporated in Tender Documents of metro companies for procurement of metro cars and related critical equipment and sub-systems, procurement of only Made in India signalling equipment besides standardizing technical parameters for rolling stock (metro coaches) and signalling equipment.
The new mandatory Tender Conditions and standardized norms for a wide range of equipment, approved by the Minister of Urban Development Shri M.Venkaiah Naidu have been circulated to all the metro companies making them effective immediately.
These initiatives will incentivize setting up manufacturing facilities in the country by increasing the volumes of procurement of rolling stock and all kinds of equipment by removing variations in the present technical norms for rolling stock and signalling equipment.
This will in turn result in reduction of cost through economies of scale.
The Ministry has stipulated the following mandatory conditions to be incorporated in Tender Documents:
1. Minimum 75% of the tendered quantity of metro cars shall be manufactured indigenously with progressive indigenization of content, for which the contractor may either establish independent manufacturing facility in India or partner with Indian manufacturers, if the procurement is more than 100 cars;
2. To facilitate ease in maintenance through easy availability of spares beyond the warranty period, an identified list of critical equipment and sub-systems shall be included in the Tender Document for ensuring indigenous manufacturing of a minimum of 25% of such equipment, either by Original Equipment Manufacturers themselves by establishing a wholly owned subsidiary in India or through Indian manufacturers;
3. Requirement of metro cars at State level shall be clubbed to enable applicability of local procurement norms; and
4. To develop in-house expertise on long term basis, metro companies with large size fleet to undertake in-house maintenance.
Source: PIB
A total number of 1,912 metro coaches are currently operational in the country with another 1,420 under procurement.
Over the next three years more than 1,600 metro cars would be required. Each metro coach is estimated to cost about INR .10 cr.
The long pending standardisation of norms for rolling stock and signalling equipment applicable to over 90% of the present imports.
Further, to promote indigenous manufacturing, the Ministry has stipulated procurement of 9 types of signalling equipment from within the country.
Metro companies have also been directed to develop maximum possible local competence so that knowhow and technical support is available within the country.
Indian companies have to be associated with production of a wide range of signalling and train control project equipment.
Homogenization of several metro functions has also been prescribed.
Presently, metros are operating in 7 cities of Delhi, Kolkata, Mumbai, Jaipur, Gurgaon, Bengaluru and Chennai with a total route length of 326 kms.
Metro projects with a total route length of 546 kms are under construction in 11 cities and projects with a total route length of 903 kms in 13 cities are under consideration.
