Metro rail companies will have to buy 75% coaches made in India

The Make In India project, a flagship scheme of Prime Minister Narendra Modi, has got a major shot in the arm as the Centre has approved standardisation of norms for procurement of metro rolling stock. The new norms mandate 75 per cent of metro car and 25 per cent of critical equipment and sub-systems production the country only.

The new mandatory tender conditions and standardised norms for equipment have been approved by Urban Development Minister M Venkaiah Naidu and the same have been circulated to all the metro companies to make them effective immediately.

According to a senior official, the initiative would help in encouraging setting up manufacturing facilities by increasing the volumes of procurement of rolling stock, resulting into cost reduction through economies of scale.

According to the new norms, minimum 75 per cent of the tendered quantity of metro cars would now be manufactured indigenously by either establishing an independent manufacturing facility in the country or partnering with Indian manufacturers, if the procurement is more than 100 cars.

The revamped norms also make it must to include identified list of critical equipment and sub-systems in tender document for ensuring indigenous manufacturing of a minimum of 25 per cent of such equipment – again either by establishing a wholly owned subsidiary in India or through Indian manufacturers.

A total number of 1,912 metro coaches are currently operational in the country with an immediate requirement of 1,420 and it's expected that over the next three years more than 1,600 metro cars would be required. Notably, every metro coach is estimated to cost about Rs 10 crore.

Further, to promote Make In India initiative, the ministry has stipulated procurement of nine types of signaling equipment from within the country and metro companies have also been directed to develop maximum possible local competence so that know-how and technical support is available within the country.

Presently, metros are operating in seven cities -Delhi, Kolkata, Mumbai, Jaipur, Gurugram, Bengaluru and Chennai –with a total route length of 326 km. Metro projects with a total route length of 546 km are under construction in 11 cities and projects with a total route length of 903 km in 13 cities are under consideration.