Key Points

The Indian Railways clarified Siemens fairly won the 2022 locomotive tender over Alstom through a competitive bidding process. Both companies were technically equal, but Siemens offered a lower price in the financial bid. The ministry stressed the process followed strict institutional rules without ministerial involvement. Over 89% of components for these 9000 hp locomotives will be manufactured domestically in India.

Key Points: Siemens Wins Fair Indian Railways Tender Over Alstom for Locomotives

  • Siemens beat Alstom on price in transparent financial bid
  • Technical evaluation placed both firms equally
  • Railways confirms zero ministerial role in tender
  • 89% components for locomotives made in India
3 min read

Siemens outbid Alstom in 'fair' tender process for electric locomotives: Govt

Indian Railways confirms Siemens fairly outbid Alstom in transparent 2022 tender for 9000 hp electric locomotives at Dahod factory.

"Siemens won the tender as it was the lowest bidder with a highly competitive price - Ministry of Railways official"

New Delhi, June 23

The Ministry of Railways clarified on Monday that Siemens & Alstom are two electric locomotive manufacturers globally who can design and manufacture 9000 hp electric locomotives, and both of them participated in the tender for the Dahod factory in 2022.

“Siemens won the tender as it was the lowest bidder with a highly competitive price,” an official of the ministry said.

Responding to questions being raised on the 2022 bidding process, involving the manufacturing of locomotives in Dahod, the Ministry said the tender was executed transparently. The tender was evaluated by a team of technical and financial experts, in line with the processes that Indian Railways has always followed. In the technical evaluation, both Alstom and Siemens were equally placed. In the financial bid, the bidder with the lowest price was awarded the contract, the Ministry of Railways further stated.

The price discovered through this transparent method is highly competitive. The contract is as per the tender documents. There is no change in the tender conditions, the official statement said.

The entire tender process was executed by the teams of officers who are technically and financially competent to handle such matters as per the rules. There is no question of conflict of interest because the process was followed as per the rules and procedures that Indian Railways has always followed.

The Ministry further stated that there is no role for the Minister of Railways in the tender evaluation process. From 2016 onwards, Railway Ministers ceased to approve tenders. All approvals are handled by empowered Railway Board Members and zonal units, ensuring complete institutional transparency, neutrality and delegation of power. Moreover, both Siemens and Alstom have been working with Indian Railways for many decades.

Over the past two decades, Indian Railways has been moving to life cycle cost-based procurements so that the reliability of products increases and thereby the safety of passengers increases, the statement said.

As per the current manufacturing process, about 89 per cent of the components used in the manufacture of Dahod locomotives are made in India. The railway component manufacturing ecosystem is rapidly growing in India.

A locomotive is a very complex machine, and its components are equally complex. They are manufactured at various locations in India and supplied to various locomotive manufacturers. Very few countries in the world can claim the level of manufacturing components that India has been able to achieve because of the thrust given to manufacturing in the last decade, the statement explained.

The locomotives manufactured at Dahod will be maintained at four depots - Visakhapatnam, Raipur, Kharagpur, and Pune, the statement added.

- IANS

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Reader Comments

R
Rajesh K.
Good to see transparency in the bidding process! Indian Railways has come a long way from the days of corruption allegations. Siemens is a trusted name globally, and if they offered the best price, it's a win for taxpayers. Make in India component is impressive too 🇮🇳
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Priya M.
While the process seems fair, I hope quality isn't compromised just for lower price. Locomotives are critical infrastructure - we've seen what happens with poor quality tracks and signals. Safety should be priority #1 over cost savings.
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Arjun S.
89% Indian components is the real story here! 👏 Our manufacturing capability is growing stronger. Remember 15 years back when we imported everything? Now we just need the German/Japanese tech know-how while making most parts locally. Smart strategy.
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Sunita R.
The depots mentioned are all in South/Central India. What about North India? We need maintenance facilities in Delhi, Punjab, UP too. Railways should think about balanced regional development.
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Vikram J.
Alstom has been making locomotives in Bihar for years. Hope this doesn't affect jobs there. Competition is good but we must protect existing manufacturing ecosystems too. #VocalForLocal
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Neha P.
The technical details are reassuring but I wish Railways would make these evaluation reports public. More transparency = more public trust. Otherwise people will keep doubting the process, no matter how fair it is.
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Karan D.
Life cycle cost approach is the right way! Cheapest upfront isn't always cheapest long

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