Siemens to make 1,200 electric freight locomotives for railways; Stock surges ~2%

26 Dec 2022 , 01:00 PM

Siemens Limited has announced to the exchanges that the company has been emerged as the lowest bidder for the 9000 HP Electric Locomotives project in Dahod, Gujarat.

Indian Railways has issued the Letter of Award (LoA) for manufacturing and maintenance of 9000 HP Electric Freight Locomotives to the Company where railways factory at Dahod to manufacture 1200 high horse power (9000 HP) electric locomotives over a period of 11 years.  It would entail manufacturing of 1200 locomotives and maintenance of these locomotives for 35 years.

Further, the estimated value of contract is about Rs26,000 crore (about 3.2 Billion USD), excluding taxes and price variation.

Accordingly, agreement with Siemens India will be signed within 30 days of issue of LoA and the proto-type locomotives are to be delivered in the upcoming two years. Dahod Unit will be fully constructed for manufacturing these locomotives within a period of two years. Siemens, selected as technological partner, will manufacture these locomotives at Dahod unit and maintain these locomotives at four maintenance depots – Vishakhapatnam, Raipur, Kharagpur, Pune for a period of 35 years utilising Railway’s Manpower.

Indian Railways have selected Siemens India through a fair, transparent and competitive bidding process as the Technology Partner to manufacture and maintain these locomotives utilizing Railway staff under the supervision of Technology Partner.

At around 12:10 PM, Siemens was trading at Rs2834.20 per share higher by 1.72% on the BSE.

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