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Local procurement made mandatory in Metro projects!

By Niranjan Mudholkar,

Added 24 April 2017

Big boost to ‘Make in India’; 75% of metro cars, 25% of critical equipment and sub-systems to be produced in the country

Ministry of Urban Development has taken several far reaching decisions to promote Make in India campaign. Pic for representation only.

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 signaling equipment besides standardizing technical parameters for rolling stock (metro coaches) and signaling equipment.

The new mandatory Tender Conditions and standardized norms for a wide range of equipment, approved by the Minister of Urban Development M. Venkaiah Naidu have been circulated to all the metro companies on Friday this week 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.

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