India's proposed Rs 22,000-crore (Rs 220 billion) dedicated freight corridor projects on the eastern and western routes have caught the eye of international transport majors.
Companies such as Mitsubishi Corporation, Itochu, Bombardier Transportation, Siemens, GE, and Alstom are keen on being a part of the special purpose vehicle for the dedicated freight corridors. Their representatives are in talks with the Ministry of Railways for picking up of a stake in the special purpose vehicle or supply of infrastructure items.
Sources close to the development said the companies were keen on manufacturing diesel and electric locomotives and wagons, alongwith signalling communication equipment for the projects, which will be meant exclusively for cargo trains.
"We are keen on participating in the dedicated freight corridor projects. At present, we are involved in the Delhi Metro project. We are exploring the option of setting up a manufacturing and maintenance centre for locomotives," a Mitsubishi Corporation executive said.
The estimated investment for a locomotive manufacturing plant alone is over Rs 10,000 crore (Rs 100 billion).
Industry analysts pointed out that Indian Railways would need at least 500-600 electric freight locomotives, besides the same number of diesel locomotives, for the freight corridors in the first phase.
Bombardier executives also confirmed that the company was considering setting up with the Indian Railways greenfield manufacturing plants for electric freight locomotives.
A source in the Ministry of Railways said other major players like Itochu, GE and Alstom had also held preliminary talks with the central government.
"However, the modalities for private sector participation are not yet finalised. Investment will be required in areas like laying of rail lines, manufacture of locomotives, supply of wagons and signalling communication equipment. At present, we are in the process of completing a survey for the project," he said.
