The ambitious Rs 30,000 crore (Rs 300 billion) dedicated freight corridors and metro projects of various states have helped India attract global rail transport giants to invest in the country.
Three major companies, Japanese giant Toshiba, Canadian major Bombardier and GE, are looking at manufacturing wagons and coaches in the country.
A high-level delegation from Toshiba is in talks with Indian Railways for manufacturing coaches and locomotives. Canada's Bombardier Transportation will soon set up a multi-million dollar rail car manufacturing facility in the country, while GE has picked up a 15 per cent stake in private wagon-maker Titagarh Wagons.
Other international transport majors in the queue include Mitsubishi, Alstom, Siemens and Itochu.
A senior railway ministry official said the government had talks with MNCs, including Toshiba and Bombardier, for setting up locomotives and coaches to supplement the upcoming metros and the dedicated freight corridor.
Bombardier Transportation, a group company of $15 billion aircraft-to-rail equipment maker Bombardier, will shortly set up a greenfield plant in India to make rail cars for the Delhi Metro project. Bombardier Transportation is looking at Baroda or Hyderabad for the first greenfield investment by an MNC for rail equipment.
Bombardier Transportation recently won a $590 million order for 340 rail metro cars from Delhi Metro Rail Corporation. Deliveries of the trains are scheduled to begin in the last quarter of 2008, with the final deliveries expected to take place in 2010 before the Commonwealth Games. In the phase-II expansion of Delhi Metro, Bombardier's metro cars will transport 4 million passengers every day.
Rajeev Jyoti, managing director, Bombardier Transportation (India), said: "We are looking at setting up a greenfield facility either in Baroda or Hyderabad to undertake manufacturing of metro cars. Though investment details are not finalised, we are expediting the process as we have secured the Delhi Metro car project."
Initially, Bombardier will build car bodies, bogies and the propulsion system in Germany and Sweden and later they will be shifted to the greenfield facility in India.
Meanwhile, GE Equipment Services has entered India by picking up a 15 per cent equity stake in Titagarh Wagons, a leading domestic private wagon maker.
Besides manufacturing wagons, GEES would also set up facilities for maintenance of wagons and signalling equipment in India.
Mitsubishi Corporation is also exploring options to set up a locomotive manufacturing and maintenance facility like other global giants such as Siemens, Alstom and Itochu.
Indian Railways will require Rs 60,000 crore (Rs 600 billion) for completing its projects, including strengthening, modernising and creating new infrastructure. The ministry is adopting private-public partnership to source the funds.
