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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.

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.

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 Rs.10 cr.

The Ministry has concluded 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.

Indigenization of several metro functions has also been prescribed. These relate to communication systems, managing operational disturbances, time table preparation, fault reporting, control traction power, maintenance, infrastructure supervision, rolling stock management etc.

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