homebusiness NewsRailways picks Siemens for Rs 26,000 crore contract for manufacturing and maintenance of 1200 locomotives

Railways picks Siemens for Rs 26,000-crore contract for manufacturing and maintenance of 1200 locomotives

As per the LoA, a total of 1,200 high 9000 HP electric locomotives will be manufactured over a period of 11 years, for which the maintenance period will be 35 years.

By CNBCTV18.com Dec 26, 2022 1:14:07 PM IST (Updated)

2 Min Read
The Indian Railways has issued a Letter of Award (LoA) for the Manufacturing and Maintenance of 9000 HP Electric Freight Locomotives to Siemens, India. The technology partner, Siemens, will manufacture 1200 locomotives at the Railways factory over a period of 11 years. The estimated value of the contract is Rs 26,000 crore excluding taxes and price variation.
The contract will entail the manufacturing of 1200 High Horsepower (9000 HP) electric locomotives and their maintenance for 35 years.  The technology partner also has the responsibility to ensure 95 percent availability and 1,50,000 km of trouble-free operation of locomotives before any maloperation. This is specified as one of the guaranteed Key Performance Indicators (KPIs).
The agreement with Siemens India will be signed within 30 days of the issue of LoA, and the proto-type locomotives are to be delivered in the next two years.