Thursday, November 9, 2006

The Indian Railways (IR) has tied up with the Canadian transport solutions major Bombardier Transportation to produce electronic freight locomotives in the country for the proposed Rupee (Rs) 22,000-crore (one crore is 10 million) dedicated freight corridors on the eastern and western routes.

Bombardier produces regional aircraft and business jets to rail transportation equipment.

Bombardier Transportation officials have met Railways’ officials for exploring the option of setting up a greenfield electronic freight locomotive manufacturing facility and an assembling unit in India.

Analysts feels that IR will need at least 500-600 electronic freight locomotives, besides the same number of diesel locomotives for dedicated freight corridors in the first phase. “Conservative estimates for a normal locomotive are between Rs 13 crore and Rs 15 crore. The investment required for manufacturing electronic freight locomotives is around Rs 10,000 crore,” the analysts said.

It is also been learned that IR would also pick up a stake in this project.

Bombardier President, Transportation, Andre Navarri confirmed talks with IR, “We are keen to take part in the dedicated freight corridor project, but the nature of the agreement with the Indian government is yet to be finalized.”

IR will come up with a detailed plan and tenders for the proposed corridor by mid-November.